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Oil

Energy scarcity warrants tough response to market abuse

Market manipulation is a problem that is controversial and tricky to define, but it must be taken seriously. That is particularly true in energy markets, where the optimal allocation of resources is more important than ever, argues industry veteran…

Oil collapse fails to dent zeal for hub-based gas pricing

In recent years, European buyers of natural gas have pushed strongly in favour of contract pricing based on the continent's gas hubs, rather than more traditional formulas linked to the price of oil. Given the huge drop in crude prices, has this stance…

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…

Dodd-Frank reporting lets traders prey on hedgers

The US Dodd-Frank Act has foisted transparency on derivatives markets by requiring the public reporting of over-the-counter trades. But some end-users are crying foul, as the new rules cast a spotlight on the once-hidden execution of their hedging…

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