Energy transition
Algorithmic trading in energy markets
Algorithmic traders are now a significant presence in energy markets. Alexander Osipovich explores how they’re changing the game for human traders
High-frequency trading spreads across energy markets
High-frequency trading (HFT) is playing an ever-larger role in energy markets, but is it really suited to the nuanced deal sheets of commodities? Stephen Maloney considers this and asks whether HFT is in fact quietly tilting the table to favour those…
Interview: CME Group
In the first of a two-part series with senior executives at the CME and Ice, Pauline McCallion talks to Gary Morsches, managing director, energy, products and services at CME Group, about the future for exchange-traded energy
Healthy volumes for capesize FFAs seen continuing in 2012
Strong iron ore demand is expected to keep capesize prices afloat this year, although some choppiness is forecast. Jay Maroo reports on what that means for the forward freight agreement market in 2012
Power plant hedging strategies
A comparison of common delta-hedging strategies and calculations finds that simple formulas used to calculate delta hedges can lead to severe biases. Cyriel de Jong, Hans van Dijken and Alexandra Bundalova suggest a relatively fast, but more accurate…
Marginal oil gaining market share, setting higher floor price
Marginal oil, with its greater risks and higher cost of production, will exert more influence on oil prices as it moves to becoming 10% of global supply by 2035. Gillian Carr reports
US natural gas hedging: 2012 outlook
Pauline McCallion speaks to natural gas producers and consumers about what’s on the radar that might affect their hedging strategies this year
WTI-Brent spread volatility disrupts hedging programmes
Jet fuel prices have been tracking Brent more closely than WTI, raising questions about the hedging strategies of US airlines. Alexander Osipovich reports
Iran to remain biggest short-term risk to oil prices in 2012: analysts
The developing situation in Iran will continue to be the biggest short-term driver of oil prices, as the EU prepares to potentially join the US in sanctions on Iranian crude and the closure of the strategic Strait of Hormuz remains a threat, say oil…
Companies cautious on hedging in headline-driven energy markets: consultants
Energy-intensive companies are reluctant to pursue aggressive hedging programmes in the current market environment, where headlines are having a disproportionate effect on prices compared with the fundamentals, say consultants
Sponsored Q&A: The Structure Group
Baris Ertan, ETRM practice lead at The Structure Group, provides a consultant's outlook for 2012
Exelon-Constellation merger edges closer to completion
On the back of further regulatory approvals, the creation of the largest competitive energy provider in the US is now looming ever closer
Off-take deal targets West coast REC demand
Long-term REC off-take deal hedges West coast renewable energy compliance needs out to 2030; RECs demand expected to increase
Regulation, credit are major challenges for energy traders in 2012: Trayport’s Davies
Regulation and credit are two of the biggest challenges facing energy trading companies in 2012, says James Davies at Trayport.
Gas users lock in low long-term prices
Long-term price risk management deals are becoming more popular with utilities and regulators as a way to lock in low natural gas prices
Energy Risk Environmental Rankings 2011
Carbon prices have plunged in both Europe and the US recently as the fragile global economy takes its toll. However, interest in green markets remains relatively unscathed, with voluntary emissions and biomass markets ones to watch in 2012, writes…
Profile: CME Group's Mike Prokop
With the use of some helpful props, CME Group’s Mike Prokop talks Pauline McCallion through a career spanning more than a quarter of a century in the world of energy trading
Regulation a concern for CEE power and gas traders
Regulation, market coupling and the drawback of import/export tariffs were some of the most pressing issues discussed at Energy Risk’s central and eastern Europe conference last month. Gillian Carr reports
Has the bubble burst for Italy's renewables market?
The recent legal changes relating to the renewables energy sector in Italy, which will retroactively cancel all industry incentives, has caused strong opposition from energy players. Catia Tomasetti and Gabriele Malgeri outline the changes
Q&A – RWE npower's Volker Beckers
Vanya Dragomanovich talks to RWE npower’s chief executive Volker Beckers about his hopes and concerns for UK electricity market reform and his long-term vision for the UK power markets
Outlook for UK natural gas
The traditional contango of the UK natural gas curve has smoothed out in recent weeks, with summer seasons now at parity and the winters either on a par or even dipping into backwardation. Tom Woolley investigates the trend and its likely impact on…
Energy traders await position limits with apprehension
Pauline McCallion reports on continued concerns about the CFTC’s final rule on position limits for energy traders, which is expected to come into effect in 2012
Mixed opinion over compensation for energy intensive firms
The recently released autumn statement shows compensation will be offered to energy-intensive companies as a result of UK climate policy, but questions remain around the details of the initiative and the level of compensation on offer
Renewable energy companies increase derivatives use: survey
Companies in the renewable energy industry are increasingly turning to financial derivatives to manage risk