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 at 30: Learning from the past
Energy Risk looks back at the seminal events and developments that have shaped today’s energy markets
Past disasters can prove the value of energy risk management
Analysing failures and losses at energy firms can underscore the value of consistent, high-quality risk management
How quants shaped the modern energy markets
The business models of today’s utility firms are built on quantitative analysis, but the introduction of these techniques in the 1990s was far from smooth
Interview: Vince Kaminski
Market veteran Vince Kaminski discusses the biggest risks to energy firms today and whether risk teams can ever prove their value
Mounting risk prompts refocus on integrated energy risk management
Energy firms are facing heightened risk due to shifting geopolitics, climate change and the energy transition. As market, credit and enterprise risks ramp up, the need for improved integrated risk management is growing, say risk managers
Energy supply chains seen as a growing risk
Supply chain risk is now a major concern, with some firms even viewing it as an existential threat, survey finds
Can behavioural science curb rogue traders… and compliance costs?
Instead of using surveillance to catch endless bad apples, experts urge banks to clean the barrel
Former regulator urges new approach to AI explainability
Ex-OCC chief Michael Hsu suggests shift from academic analysis to decision-based techniques
