Alternative fuels
Skylar’s Perkins sees potential for volatility in US natural gas
Bill Perkins believes rising demand and reduced risk warehousing will create opportunities for natural gas traders: video
Cutting edge: Minimising risk when hedging crude oil options
In this paper, Christian-Oliver Ewald, Roy Nawar and Tak Kuen Siu study the performance of locally risk-minimising hedging strategies in the context of futures and options written on crude oil. In contradiction to prior research, the authors show it is…
Citi head of LNG origination departs
Rodney Malcolm replaced by Mike Curry, head of North American electricity sales
Exchanges plan futures in response to RIN price surge
CME Group and Ice plan to roll out futures based on biofuel Renewable Identification Numbers
Cutting edge: Hedging price and volumetric risks of fixed-price load-serving contracts in natural gas markets
In this article, Ning Zhang and Robert Cumbie propose a utility maximisation method for natural gas marketers to find optimal hedging strategies to deal with price and load uncertainty by using price and weather derivatives. Monte Carlo simulation…
LNG derivatives suffer from lack of liquidity
The growth of LNG fuelled high hopes for the LNG derivatives market, causing exchanges to launch a variety of contracts during 2012. But firms say there’s a long way to go before a liquid market emerges. Jay Maroo investigates
Nucor praised for pursuing natural hedge
US steel maker’s acquisition of natural gas assets is seen as viable long-term hedge and an alternative to derivatives
Energy Risk Europe: Austrian Airlines risk manager rails against hedging
Austrian Airlines risk manager argues fuel hedging delays firms' adaptation to higher costs and should be avoided
LNG seen as big winner from nuclear decline in Japan
Japan’s decision last week to remove nuclear energy from the country’s fuel mix by 2040, is set to significantly increase the country’s short-term demand for fossil fuels, especially liquefied natural gas, say analysts
Aggressive oil hedging enables Plains E&P’s big deepwater play
Plains Exploration & Production will hedge up to 90% of its oil production for the next three years, the Houston-based company says as it reaches a deal to buy $6.1 billion of oil assets in the Gulf of Mexico from BP and Shell
Special report: Renewables
This month's special report looks at the future for global renewables markets with a focus on the derivatives markets in European biodiesel and US ethanol and a look at funding challenges for US wind and solar projects.
US biofuels: beyond ethanol
Growth in the US ethanol market is slowing as the government rethinks its support for the industry. What does that mean for biofuels traders and could ethanol’s pain be biodiesel’s gain? Alexander Osipovich reports
European biodiesel: a market on hold?
The European biodiesel market is currently dealing with a combination of falling prices, market supply shifts and regulatory uncertainty. Jay Maroo talks to market experts about their outlook for this challenging marketplace. Jay Maroo reports
Trading positions – June 2012
Energy Risk catches up with the latest appointments, promotions and departures in global commodity markets
Deal of the Year – Highly Commended: Macquarie Energy
Macquarie Energy’s physical oil team have received highly commended status in Energy Risk’s 2012 Deal of the Year award for winning a substantial contract to work with Canada’s Harvest Operations selling crude to, and purchasing product from, its…
Airline hedging falling short of best practices
Fuel hedging programmes at many airlines fall short of best practices, according to a new industry survey. Alexander Osipovich finds out how they are going awry
Analysts still sceptical of Delta Air Lines refinery acquisition
This week, Delta Air Lines confirmed rumours that it was purchasing a refinery on the US east coast, a first-of-its-kind transaction. As details of the deal have emerged, some observers have warmed up to the idea that Delta can better manage its fuel…
Middle distillates to strengthen on supply constraints?
Diesel and heating oil prices have risen on the back of crude oil gains this year, but they also have some unique supply and demand issues to consider, finds Jay Maroo
Energy Risk Deals of the Year 2012: BarCap's VPP deal with Chesapeake
Barclays Capital pioneers new volumetric payment deal with Chesapeake that allows more investors to take part
Energy Risk Deals of the Year 2012: BAML's LNG deal with Gate
Bank of America Merrill Lynch becomes first investment bank to facilitate full commissioning services in its deal with Dutch Gate LNG terminal
Icap Energy acquires European biofuels broker
Icap Energy announce acquisition of biofuels broker Sun Commodities
Fuel oil prices seen remaining high
Prices for fuel oil, historically one of the least profitable parts of the crude barrel, are close to all-time highs.