In many markets, information concerning forward prices is not available, making the direct modeling of forward curves a difficult task. With derivatives usually written on forward contracts and based on average prices of forward contracts, it is difficult to obtain analytical expressions for forward curves. Because of recent price volatility, organizations are increasingly looking to […]
With oil prices at six-year lows, energy producers are expected to cut spending in the United States by as much as 35%, according to Cowen and Co. Many organizations will be restructuring and resizing, with a focus on making the remaining resources more effective. Companies that act resolutely in light of these market realities, rather […]
The perilous freefall of oil prices during the last several months has been a stark reminder that uncertainty and volatility are relentless forces in the energy and commodities markets. During such times, information can be our closest ally. But to be valuable, that information must of course be timely, relevant, and accurate. As such, an […]
For those active in the Indian energy and commodity market, the past six months has not been for the faint of heart. I recently got to see this first hand while at Platts Commodity Week in Mumbai, September 2-4, 2013. The Platts Commodity Week conference covered everything from steel and coal to liquid natural gas […]
They say that only in times of adversity that the character of a community is truly shown. If this is the case, then Calgary must be admired for the way its communities have come together to help people quickly get back on their feet after the devastating floods that occurred only a few weeks ago. […]
It is no coincidence that Platts held its Commodity Week in Dubai, earlier this month. Located centrally between Europe, Asia, and Africa, and next door to some of the world’s largest energy reserves, Dubai’s liberal business environment and excellent infrastructure make it a natural trading hub. (If you missed it, read our focus on Dubai […]
As hurricane sandy reminded us recently, weather events can wreak havoc on the best laid plans and trading strategies. It also highlighted the importance of integrating weather forecasts and models into risk, trading and operational plans. I recently had the opportunity to get a glimpse first hand into the significance and limitations of these forecasts. […]
Renewables generation is now a significant factor in many of the most important global energy markets. Not only does it have an effect on the total generation capacity, it also affects investment decisions for new generation and grid facilities. This potential for a higher volatility in the generation market has resulted in strong growth in […]