Analysis
European power: Achieving transparency in Germany
Energy Risk’s series on European power markets focuses this month on Germany, Europe’s biggest power market and one of the best examples of market transparency. Rachel Morison looks at what can be learnt from it
Oil price volatility still concerns the market
After oil prices started to stabilise in the last quarter of 2009, all eyes turned to the market outlook for the year ahead. But as we enter a new decade, oil still remains at the top of the risk agenda and price forecasts differ vastly. Lianna Brinded…
Market focus: derivatives - Risky business
Companies that are heavy consumers of energy are particularly susceptible to market volatility. For such end-users, proper use of risk management techniques can mean make or break, says Eric Fishhaut of GlobalView
Evaluating credit & market exposure
Today’s volatile energy prices and the lower creditworthiness of some energy intensive users means energy providers have to assess counterparty risk thoroughly. David Coffman of GDF SUEZ Energy Resources provides some tips for assessing risk in the non…
Is the UK facing a gas storage crisis?
Low storage levels and growing import dependency provoke concern, but some commentators believe the market will sort out any future supply problems, as Rachel Morison reports
Currency correlations
The US dollar has undergone a 40% decline against theeuro over the past seven years. At the same time, crude oilprices have risen over 350%, and were up 57% in 2007. Theimpact of currency on the world energy markets, and whetherthere is cause or effect…
Shifting flows in Asia
Soaring Asian demand is transforming world oil markets. While Asian oil supply cannot match demand, Asia has big plans for refinery building. Eric Fishhaut of GlobalView Software investigates
Cross purposes
Cross-commodity trading, once the preserve of the large banks, isbecoming a more widespread practice throughout the energy tradingspace. Nathan Amery explores the phenomenon
Is the EU ETS working?
The EU's emissions trading scheme has created a massive oversupply of allowances for its first phase. Kjetil Røine and Henrik Hasselknippe ask whether the scheme is causing emissions reductions, whether there will be a sufficient shortage in Phase II and…
Impact of ethanol
Increased demand for ethanol in the US has led to predictions that biofuels will have a 30% share of global energy demand by 2030, writes Eric Fishhaut
Spreading opportunities
Volatile European gasoil and US heating oil prices mean traders must follow inventory and temperature forecasts carefully to stay on the right side of moves in outright and spread values, writes Logical Information Machine's energy analyst Daven Voorhies
Dealing with a volatile gas market
Eric Fishhaut explores the current state of volatility within the US natural gas market and outlines how hedging with 'strips' can be used to secure long-term prices that are variable, but known
The cruellest month
The impacts stemming from volatility in natural gas futures contract spreads – in particular the effects of seasonality on the March-April spread – have been seen in the recent dramatic losses by major hedge funds. Daven Voorhies explores some of the…
CERs come of age
A secondary market for certified emissions reductions generated by the Clean Development Mechanism now exists – but its emergence has been patchy, with some significant developments, along with some ongoing uncertainty. Point Carbon's research and…
Making green with ethanol
Financial investors and commodity traders are paying closer attention to the US corn crop, due to the potential impacts it may have on the growing ethanol market. Daven Voorhies explains
Freight derivatives market
Energy Risk looks at the latest developments in this expanding market
Weathering the impact of stormy price hikes
At the start of the 2006 hurricane season in the Atlantic Basin, Zachary Simecek takes a look at the impact on the energy markets
Integrating energy data
Knowledge is power, and having the latest information on the marketplace is of paramount importance. Eric Fishhaut looks at why centralising information can have a big impact on tactical management and developing strategies
Coping with setbacks
Most risk managers and employees in energy companies are familiar with the concepts of market risk and credit risk, but operational risk is receiving more attention in corporate boardrooms these days, writes Sandy Fielden
A comeback for coal
With gas prices soaring, it seems inevitable that coal - the Cinderella of energy resources - is bound to return to the forefront. But how long will it last? asks Eric Fishnaut
What drives natural gas?
Natural gas prices in the US are at an all-time high. The Gulf Coast hurricanes and record summer heat have taken their toll, and business is feeling the effect. Studying and applying seasonality can often protect aganst the volatility of these markets,…
Congestion charges
As the US' premier regional transmission organisation, PJM Interconnection's pricing and transmission congestion models must be foolproof. Sandy Fielden describes how they work and the associated risk management mechanisms available to participants
Seasonal surprises
Understanding how price relationships fluctuate on a seasonal basis is critical for risk managers. During 2005, two of the longest lasting seasonal patterns in the US oil markets have been turned on their heads. Sandy Fielden explains the patterns and…