Spreading opportunities
The northern hemisphere winter months are the high demand season for distillates, and spiking prices and high volatility are commonplace. It is also the time of greatest volatility in the spread between European gasoil and US heating oil. Although these fuels are chemically almost identical, they have different demand fundamentals and are therefore valued quite differently.
Both products are essential to the transportation and winter space heating markets, but not to the same extent. In Europe
More on Oil & refined products
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Energy Risk reaction: Impact of Middle East conflict on hedging and longer term risk
Energy Risk talks to Riccardo Rossi at Centrica Energy and Rob McLeod at Hartree Partners about the impact of the Iran crisis so far on firms exposed to energy
Iran strikes a stress test for CCP margin models
CME’s Span2 and Ice’s IRM2 are performing as advertised. The next few days could test their mettle
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
Energy Risk Europe Leaders’ Network: geopolitical risk
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Energy Risk looks back at the seminal events and developments that have shaped today’s energy markets
Why Iran tensions failed to rattle markets
Despite initial fears, traders say risks were signposted and investors had deleveraged after April
