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What drives natural gas?

Natural gas prices in the US are at an all-time high. The Gulf Coast hurricanes and record summer heat have taken their toll, and business is feeling the effect. Studying and applying seasonality can often protect aganst the volatility of these markets,…

Weather broker Parker leaves Fimat

Weather broker Dan Parker left brokerage Fimat in mid-October, having joined the company earlier this year. He says he is currently “on the sidelines”, considering his next move. Fimat declined to comment on Parker’s departure.

Counting on coal

NRG Energy's move to buy Texas Genco seems a wise one for a company with strong dark-spread exposure, but it has its risks, despite the target company being backed by an active hedging programme. Joe Marsh reports

Papering over the cracks

High energy prices are forcing pulp-and-paper makers to take action against falling profits, yet most companies are still shying away from energy price hedging. But that situation may be slowly changing. Joe Marsh reports

BEAU TAYLOR

Beau Taylor , global head of energy at JP Morgan, plans to turn the bank from a niche participant into a dominant player in the energy markets. By Joe Marsh

Nymex pit opens in London

Some 76 individuals and 12 companies showed up to trade Brent and gas oil futures on the first day of trade at the New York Mercantile Exchange’s London trading floor today (Monday).

King coal still fired up

Despite the soaring cost of emissions reduction credits, the EU emissions trading scheme has yet to dampen utilities’ demand for coal. But, finds Oliver Holtaway, it may affect their long-term investment decisions

Baiting the hook

End-users such as utilities and industrial companies are not showing the same keenness as hedge funds for trading weather derivatives, despite the efforts of banks, dealers and brokers to lure them in. By Joe Marsh

Pricing the weather

Pricing weather derivatives is different from valuing other derivatives contracts – actuarial methods play a greater role. Steve Jewson looks at the varied approaches available

Strength in numbers

Weather derivatives seem to have a bright future: the market is enjoying record liquidity levels as new players, trading ever more diverse products, flood into the market. Oliver Holtaway reports

Former Swiss Re weather experts launch hedge fund

Weather risk veterans Mark Tawney and Bill Windle, who left global reinsurer Swiss Re on July 7, are starting a hedge fund, named Takara, Energy Risk has learned. Weather trader Bill MacLauchlan departed Swiss Re at the same time, for personal reasons.

In pole position

Sakonnet’s Thurstan Bannister says a sound footing in risk management and a customer-facing approach is the secret of his company’s success. By Stella Farrington

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