WTI-Brent spread volatility disrupts hedging programmes
WTI-Brent spread volatility disrupts hedging programmes
The expected narrowing of the WTI-Brent spread in 2012 should help restore a measure of sanity for fuel hedging programmes at US airlines, after a year in which they were battered by a huge dislocation between the price of West Texas Intermediate crude oil and the cost of jet fuel.
Most US airlines use WTI as the basis for their fuel hedges, and historically the WTI price has closely tracked the price of Brent North Sea crude, the preferred benchmark in Europe. But in recent years, thanks to
More on Risk management
Energy Risk reaction: Venezuela and oil sanctions
Energy Risk talks to Rob McLeod at Hartree Partners about the energy risk implications of the US’s control of Venezuelan oil
CRO interview: Shawnie McBride
NRG’s chief risk officer Shawnie McBride discusses the challenges of increasingly interconnected risks, fostering a risk culture and her most useful working habits
Increasingly interconnected risks require unified risk management
Operational risk is on the rise according to a Moody's survey, making unified risk management vital, say Sapna Amlani and Stephen Golliker
Energy Risk Europe Leaders’ Network: geopolitical risk
Energy Risk’s European Leaders’ Network had its first meeting in November to discuss the risks posed to energy firms by recent geopolitical developments
Energy Risk US Leaders’ Network: tackling volatility
Energy Risk’s inaugural US Leaders’ Network convened in Houston in October to discuss risk management challenges caused by geopolitical upheaval, policy uncertainty and volatility
LNG trading strategies set to change amid major market shifts
The global LNG market is on the brink of significant changes set to alter trading dynamics and market behaviour, say analysts
Why commodity finance is ripe for stablecoin
Digital currency brings cost efficiencies to financing, but its real benefit to commodity firms lies in making huge pools of new capital available, write Jean-Marc Bonnefous and Ronan Julien
US shutdown leaves commodity traders without key data
Commodity traders are ‘flying blind’ without Commitment of Traders reports
