Fuel offering and purchase management system

• US 8,452,694 B2
• Filed: 01/13/2012
• Issued: 05/28/2013
• Est. Priority Date: 04/09/2007
• Status: Active Grant

• Current Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Kirch, Michael, Sanghvi, Saurabh, Sharfman, Daniel
• Primary Examiner(s): Lemieux, Jessica
• Application Number:
  US13/350,268
• Publication Number:
  US 20120284162A1
• Time in Patent Office: 501 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present disclosure is directed to facilitating pricing, sales and delivery of a commodity. In one embodiment, a Fuel Offer Generator facilitates the purchase and management of fuel offerings. The Fuel Offer Generator allows Customers interested in securing fuel to obtain an offer for fuel at lock-in prices for various tenors. Fuel Customers may later exercise the fuel offers so their fuel costs are locked-in at desired levels. The Fuel Offer Generator may generate hedges to counteract fuel related risks stemming from fuel offer purchases. A customer that purchases a fuel offering can exercise their fuel offering order at a specified price and redeem any difference between the market price for their purchased fuel and the price specified in their fuel offering order. The Fuel Offer Generator employs a geographical fuel pump location metric as well as consumer purchasing behavior to establish the pricing of fuel offerings.

Claims

1. A computer processor-implemented system to generate fuel offerings for selection by customers in a retail market, comprising:

means to set a strike price for a fuel offering;

means to determine a premium price associated with the strike price for the fuel offering based on the strike price, pricing input factors, regionally segmented pump price distribution data and regionally segmented purchase price bias data;

means to provide the fuel offering for selection by the customers at an offer price comprised of the strike price and the premium price;

means to monitor behavior of the customers related to orders and exercises of the fuel offering;

means to store information regarding the monitored behavior; and

means to adjust the offer price based on the stored information.

2. A non-transitory medium comprising instructions readable by one or more computer processors to generate fuel offerings for selection by customers in a retail market, wherein the instructions, when executed by the one or more computer processors, direct the one or more computer processors to:

set a strike price for a fuel offering;

determine a premium price associated with the strike price for the fuel offering based on the strike price, pricing input factors, regionally segmented pump price distribution data and regionally segmented purchase price bias data;

provide the fuel offering for selection by the customers at an offer price comprising the strike price and the premium price;

monitor behavior of the customers related to orders and exercises of the fuel offering;

store information regarding the monitored behavior; and

adjust the offer price based on the stored information.

3. An apparatus to generate fuel offerings for selection by customers in a retail market, comprising:

a memory; and

a computer processor disposed in communication with said memory, and configured to execute a plurality of processing instructions stored in the memory, wherein the instructions direct the computer processor to;

set a strike price for a fuel offering;

determine a premium price associated with the strike price for the fuel offering based on the strike price, pricing input factors, regionally segmented pump price distribution data and regionally segmented purchase price bias data;

provide the fuel offering for selection by the customers at an offer price comprised of the strike price and the premium price;

monitor behavior of the customers related to orders and exercises of the fuel offering;

store information regarding the monitored behavior; and

adjust the offer price based on the stored information.

4. The apparatus of claim 3 wherein to adjust the offer price includes to adjust one or more of the strike price and the premium.

5. The apparatus of claim 3 wherein to monitor behavior of the customers related to orders and exercises of the fuel offering includes to monitor behavior of the customers related to other fuel offerings.

6. The apparatus of claim 5 wherein the premium price is determined further based on the behavior of the customers related to the other fuel offerings.

7. The apparatus of claim 3 wherein the regionally segmented purchase price bias data describes an extent to which fuel purchases are biased with respect to an average price of retailers within a region.

8. The apparatus of claim 7 wherein the extent to which fuel purchases are biased includes one or more of:

a size of a bias, a volatility of the bias, and a convexity of the bias.

9. The apparatus of claim 8 wherein the volatility of the bias includes an extent to which the average price varies over time and an effect of the variation on the bias.

10. The apparatus of claim 8 wherein the convexity of the bias includes an extent to which there is a difference in average fuel offering payouts between at least two payout models.

11. The apparatus of claim 10 wherein the at least two payout models include a payout model based on a difference between an exercised strike price and an average retailer pump price and a payout model based on a difference between the exercised strike price and an individual pump price.

12. The apparatus of claim 3 wherein the instructions further direct the computer processor to execute a hedge based on the stored information.

13. The apparatus of claim 12 wherein the hedge includes purchase of at least one forward contract.

14. The apparatus of claim 12 wherein the behavior of the customers is aggregated into similarity classes and the hedge is executed based on the similarity classes.

15. The apparatus of claim 14 wherein the behavior of the customers is aggregated based on customer characteristics.

16. The apparatus of claim 14 wherein the behavior of the customers is aggregated based on risk considerations.

17. The apparatus of claim 3 wherein the pricing input factors include a price sensitivity value and the instructions further direct the computer processor to execute a hedge based at least in part on the price sensitivity value.

18. The apparatus of claim 3 wherein the offer price is a first offer price and the instructions further direct the computer processor to:

determine a second offer price for the fuel offering based on a second strike price and a second premium price; and

provide the fuel offering for selection by the customers at the first offer price and the second offer price.

19. The apparatus of claim 3 wherein the instructions further direct the computer processor to provide payment for one of the exercises of the fuel offering wherein the payment is based on a difference between the strike price and a retail price associated with the one exercise.

20. The apparatus of claim 19 wherein the retail price associated with the one exercise is an individual pump price or an average pump price for a region.