Dealing with stressed contracts in the energy sector
Energy firms have plenty of options for dealing with contracts facing strain
In the past few years, energy companies had become used to high oil prices and many expected this trend to continue. Prolonged high oil prices generated significant investment by industry players, which was often underpinned by contracts that assumed such high prices were here to stay.
Now, times have changed. On June 19 last year, front-month Brent North Sea crude oil futures closed at $115.06 a barrel (/bbl). Having plunged below $50/bbl in January, the front-month contract settled at just $58
More on Risk management
Tokenised commodities could help oil the machine
Shifting physical assets onto the blockchain eases collateral frictions, argues crypto expert
Energy Risk Debates: risk management in the clean energy space
Panellists discuss the unique issues facing firms in renewables, clean energy and carbon markets
Energy Risk 2026 Software Rankings: CTRM landscape needs to support resilience
Commodity firms’ software choices across the CTRM landscape are crucial amid current uncertainty
EU can handle energy price pressure – it’s been here before
Reforms made after Russia’s invasion of Ukraine have made region more resilient to energy shocks, officials say
A Hormuz tipping point may be days away
Agent-based model suggests delays and shortages likely to accelerate after four weeks
ENGIE’s Daronnat: pricing flexibility in the German battery market
Head of flexibility and structured origination in Germany discusses the role of FPAs and what risk teams must consider
Next-gen PPA contracts reshaping European power markets
As energy market participants seek new ways of capturing value from volatility, new skills are required to structure and price increasingly complex power purchase agreements
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
