Market risk
2014 Risk & Energy Risk Commodity Rankings photos
The top firms in this year’s Risk and Energy Risk Commodity Rankings were honoured at a champagne reception in London on February 25. We showcase the winners
There is plenty of life left in US natural gas
Sluggish prices and low volatility have provided US natural gas traders with few opportunities for trading profits in recent years. But as the past winter shows, it’s too early for them to switch off their computers and retire to the golf course, writes…
Looking back: oil market's future is different from its past
By 1994, the oil industry had changed irrevocably due to the increased use of derivatives – a trend that was discussed by Edward Krapels in an article for Energy Risk in June that year
UK power market licence changes ‘no silver bullet’
Ofgem’s moves to increase electricity market liquidity for small suppliers are a step in the right direction, but more must be done, argue market participants
Energy firms beg CFTC for clarity on commodity options
Utilities, oil producers and trading firms are urging the CFTC to issue clarification on contracts with embedded volumetric optionality
Power market coupling could spur derivatives activity
Market coupling may result in greater derivatives use and falling participation in both explicit auctions and physical nominations, survey finds
Firms expect power market coupling to have tangible impact
The process of power market coupling is continuing across Europe, with the largest and most ambitious project to date going live in February. But how do market participants feel about market coupling and how it will affect their businesses? Stella…
Conference highlights questions over Remit implementation
Problems encountered by Emir demonstrate issues that need to be solved before Remit reporting begins, argue attendees at Energy Risk Italia
Applied risk management series: Active VAR management
In this article, Carlos Blanco introduces a set of tools to assist traders and risk managers in actively managing the value-at-risk of energy derivatives portfolios
CFTC no-action letter could end public utilities' hedging woes
CFTC exempts ‘utility operations-related swaps’ from contributing towards $25 million special entity threshold under Dodd-Frank
Commodity trading houses have banks on the ropes: so what?
Commodity trading houses may well be the new market heavyweights. But contrary to arguments made by bankers, that isn’t necessarily a problem
Polar vortex revives interest in gas and power hedging
A brutally cold winter in the eastern US has roiled natural gas and power markets and shocked energy consumers that had grown accustomed to cheap, abundant shale gas. Such firms are now hedging more actively, Alexander Osipovich finds
Gulf War and supercycle are career highlights, says Saperia
Since Nigel Saperia first began working as an oil trader at Shell in 1976, the business of trading oil has been transformed. He speaks to Mark Pengelly
Energy Risk marks 20 years of covering energy markets
Energy Risk was first published back in February 1994. Since then, its fortunes have risen and fallen with those of the wider energy risk management industry. Mark Pengelly reflects on the highs and lows of the first 20 years
Renewables risk derailing benefits of EU power integration
Renewable subsidies and capacity payments threaten to quell advantages brought about by European electricity market coupling, complain industry participants
Renewables subsidy shift brings opportunity for energy firms
Germany began encouraging renewable generators to directly market their own production in 2012, reflecting a trend of giving renewables greater exposure to wholesale markets across Europe. That could spell an opportunity for more well-established energy…
FTR underfunding leaves PJM power traders out of pocket
Energy firms in the eastern US are upset about the underfunding of financial transmission rights (FTRs) in the PJM power market, saying it has made FTRs useless as a hedging tool. But even though its price tag has exceeded $1 billion, the problem shows…
Renewables and power markets must be brought together
Fixed feed-in tariffs have produced heavy increases in the volume of electricity generated via renewables, but their continued existence diminishes the strength of price signals in European power markets. Steffen Köhler puts forward a different approach
Looking back: Post-Enron nerves give way to longer-term fears
By January 2002 – just one month after US energy giant Enron filed for bankruptcy – the more lasting implications were becoming clear in the pages of Energy Risk
Morgan Stanley reshuffles oil liquids business amid Rosneft acquisition
Morgan Stanley names commodities CRO Nancy King as head of oil liquids business, while promoting former deputy Brett Humphreys to post of commodities CRO
PetroChina recruits BAML natural gas trader
Rapidly growing US unit of Chinese state energy giant PetroChina expands into financial natural gas trading with new hire
Power trading firm blasts Ferc over manipulation probe
Ferc investigation triggers unusual public defence by obscure power trading firm
Banks welcome FCA focus on commodity trading houses
UK regulator right to question risk posed by commodity trading houses, bankers argue
More US oil producers hedging with non-WTI crudes
Increased volatility pushes oil producers to hedge with LLS, WCS and other regional crudes