Natural gas
Right-way risk can create a false sense of security
Dealers typically find comfort in right-way correlations between their exposure to energy sector counterparties and the creditworthiness of such companies. While this reasoning is unquestionably correct, it may create a false sense of security, writes…
Quant ideas: Building a better LNG forward curve
A robust suite of liquefied natural gas (LNG) forward curves is an important prerequisite for the proper valuation and risk measurement of LNG portfolios. This article provides an overview of effective methods for constructing long-term LNG forward price…
BP’s Alvarez reflects on oil spills and other challenges
Orlando Alvarez, president and chief executive of BP Energy Company, reflects on oil spills and other challenges of running a large trading organisation
Remit delegated reporting leaves unanswered questions
EU energy traders have until October to begin reporting the details of standard power and natural gas trades to regulators under Remit. But the exact process by which many of these initial contracts will be reported remains blurry
Oil, weather and Ukraine boost European gas volumes
2014 saw rising activity in Europe's exchange-traded and OTC gas markets
Goldman upbeat on commodities despite tighter regulation
Adapting to new rules and capital requirements is achievable, says Agran
US natural gas hedge fund shuts down
Roaring Fork says poor liquidity in energy derivatives foiled its trading strategies
Cutting edge: Kriging smooth energy futures curves
This paper applies the method of kriging from geostatistics to extract smooth curves from energy futures prices. How the method can interpolate market prices is demonstrated, both for contracts with fixed delivery times and for delivery over a period,…
Energy traders seek deal on Remit delegated reporting
Efet is working to prepare a standard framework for delegated reporting under Remit with energy exchanges and brokers, before an October deadline for reporting kicks in
CFTC slammed for using ‘ancient’ position limits data
Energy firms are criticising the CFTC's proposed rule on commodity derivatives position limits under Dodd-Frank, saying it relies on decades-old data to set spot-month limits
Knowing your territory is vital for energy firms
Energy firms must operate in many different countries, with a variety of legal systems and cultural traditions. Strong knowledge of these areas is crucial if companies are to avoid being ensnared in a legal and regulatory minefield, writes Vincent…
TrailStone's Silbert says the best is yet to come
TrailStone chief executive David Silbert never expected to embark on a career in commodities, but the company he founded in April 2013 is now the talk of the industry, writes Mark Pengelly
Robust valuation and hedging of tolling agreements and physical assets
Krzysztof Wolyniec shows how very robust valuation bounds of tolling agreements can be obtained without modelling the dispatch process or the underlying price process. This flexible method, which uses martingale duality, provides a reliable valuation…
Official support fails to help Japan LNG contract
The launch of a new forward contract linked to liquefied natural gas (LNG) had been welcomed by the Japanese government amid hopes it might help local buyers manage their risk. But the contract has failed to take off - a sign of the challenges involved…
US energy firms welcome CFTC tweaks to Dodd-Frank rules
Long-awaited move to address ‘seventh prong’ problem seen as positive step by industry groups
LNG market participants shun Japanese forwards
Non-deliverable forwards on liquefied natural gas were launched by the Japan OTC Exchange in September, but the contracts are suffering from a lack of participation and concerns over pricing
CFTC's Wetjen urges fix to commodity options problem
CFTC commissioner says seven-part test on definition of a swap under Dodd-Frank "was not specific enough or clear enough" for industry participants
CFTC close to fixing Dodd-Frank commodity option woes
The Commodity Futures Trading Commission is said to be exploring solutions for the so-called 'seventh prong' problem created by its definition of a swap under the Dodd-Frank Act
European gas trading has bright future, panel says
Natural gas is staging a comeback in Europe after being squeezed out by coal during the past few years, according to a panel of market participants who spoke at Energy Risk Summit Europe
Energy companies facing ‘intrusive’ CFTC special calls
The US Commodity Futures Trading Commission is stepping up its market surveillance activities, issuing special calls to numerous firms that trade over-the-counter swaps. That is causing headaches for smaller energy companies tangled up in the dragnet…
Devil in the detail for Mexico power sector reform
The deregulation of Mexico’s state-dominated electricity sector is sparking enthusiasm among international energy firms eager for investment opportunities. But many challenges remain as regulators create the country’s new wholesale gas and power markets,…
Power pioneer reflects on EU market development
Having been closely involved in Dutch market liberalisation during the mid-1990s, Bert den Ouden has gone on to play a key role bringing Europe’s power markets closer together. He speaks with Gillian Carr
Mexico to rein in CFE and Pemex market power
Regulators will not allow state-owned electricity and oil and gas companies to abuse their dominance and stifle private competition, says CRE commissioner
European gas trading boosted by uncertain outlook
Volatility in European natural gas is soaring due to upheaval in Ukraine and an unusually high amount of gas in storage, prompting a rise in hedging and financial trading