Feature
QE3: The next big driver for oil prices?
Quantitative easing has been touted as the next big driver of oil prices. However, analysing and predicting the market behaviour it actually generates is difficult. Jay Maroo talks to experts about what they expect from QE and how this might impact risk…
Energy firms tune in to weather forecasts
As weather forecasting becomes more accurate, utilities and banks are increasingly turning to it – not only to predict power and gas demand – but also to find arbitrage opportunities, writes Gillian Carr
Lack of critical mass in biomass
Growth in the use of biomass has led clearing houses to list derivatives referencing the organic fuel source, while some experimentation has also taken place within the over-the-counter markets. But these efforts are yet to yield substantial success. Jay…
Is risk modelling keeping up with the energy market?
Lean times in energy and commodity derivatives trading have caused a cutback in the amount of time and resources spent on energy risk modelling – a worrying trend that could leave firms unprepared for future market challenges, argue some experts. Mark…
Credit valuation adjustment for energy and commodity derivatives
This is the first of a two-part series on credit valuation adjustment (CVA). In this piece, Carlos Blanco and Michael Pierce introduce the concept of CVA and show how to calculate CVA at the trade and portfolio levels
A Texas-sized challenge
Demand response could help resolve Texas’ shortage of generation capacity, but how should the Lone Star state retool its power markets to bring about more demand-side participation? The answer will have nationwide implications, Alexander Osipovich finds
Outlook for freight derivatives market
Liquidity in the dry bulk freight derivatives market dried up rapidly this year with many players exiting the market. Jay Maroo talks to market experts about their outlook for the market now and what needs to be done to kick-start it
Does commodities floor trading have a future?
Once the beating heart of global energy markets, the Nymex trading floor now seems to be in its death throes. Alexander Osipovich asks how much longer open outcry has to live – and whether we should be sorry to see it go
New breed of upstream oil & gas firms have increased appetite for hedging
The growth of master limited partnerships in the North American energy sector is creating a new breed of exploration and production companies with an increased appetite for hedging. The biggest of these, Linn Energy, has hedged 100% of its production out…
Energy Risk interview: chief fund manager at Japan's Astmax
Tetsu Emori, chief fund manager at commodities-focused asset manager Astmax, talks to Energy Risk about the firm’s trading strategy and his commodities outlook for Asian investors
Outlook for commodity trading in Asia
Commodities trading in Asia has grown significantly with corporates looking eastwards for new opportunities and growth. But an uncertain global climate and regulatory differences provide challenges. Gillian Carr reports
Energy firms gear up for new data management requirements
Upcoming regulatory reporting requirements will mean a vast increase in the amount of data being handled by energy companies and most will require updates to their existing systems. Gillian Carr speaks to industry experts about what to expect
Commodity hedging's PR dilemma
Media coverage of hedging is often flawed, distorted or downright wrong, and companies face huge challenges in managing public perceptions of their hedge programmes, Alexander Osipovich finds
Five myths about the build or buy debate for energy risk and valuation models
Building additional risk and valuation functionality for existing ETRM systems is very often necessary, but decisions to develop it internally are often flawed, argues Chris Strickland
Growing pressure to de-link European oil and gas prices
Gazprom’s latest renegotiations of its long-term gas supply contracts resulted in lower prices for the buyers, but no attempt to move away from oil indexation. But with spot gas prices in Europe forecast to remain depressed, the pressure to de-link oil…
Energy companies increase weather hedging
As temperatures rise and extreme events grow more common, energy companies have stepped up their hedging of weather risk, according to market participants. Alexander Osipovich reports
European power market: CWE's next challenges
The central-western European market is at the heart of power trading in Europe and is something of a blueprint for plans to create a single European electricity market. With market coupling progressing well, other challenges now need to be addressed,…
Dodd-Frank introduces technology challenges
Now that US regulators have set the clock ticking on Dodd-Frank, energy firms are sprinting to comply with the new rules. But adapting their legacy trading and risk management systems will be a significant challenge, Alexander Osipovich finds
The outlook for mobile energy trading
Could mobile technology revolutionise commodity trading and bring benefits to risk management, or is it more about offering convenience for individuals? And do the potential benefits outweigh the obvious risks? Jay Maroo investigates
Spotlight on post-trade reconciliation in energy markets
Advances in post-trade reconciliation processes have traditionally been slower in the commodity and energy markets than in other asset classes but are beginning to catch up due to improved technology and regulatory pressures, finds Gillian Carr
Will a 'set-aside' save the EU carbon markets?
Structural changes to the European carbon market are due to take effect in 2013. However, while the proposals could revive the ailing market, disagreement is rife on how to proceed, says Samuel Fenwick
Special series risk management reporting: Where's the 'RM' in ETRM?
Energy trading and risk management (ETRM) systems tend to have far better ‘ET’ than ‘RM’ functionality, a problem that will only be magnified by the move towards increased regulatory oversight, writes Chris Strickland in the third article of this series
Strategic portfolio analysis - a new approach
Jim Fitzgerald and Andreas Gertsch Grover describe a new technique that allows energy traders and risk managers to play an important role in asset investment decisions
Can innovative funding rescue US renewables?
US renewable energy developers are struggling to raise funding as government incentives expire and bank lending dries up. Could financial innovation provide the answer? Alexander Osipovich investigates