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Upcoming Singapore, London & Houston Seminars

 

If the recent decline in prices has you wondering how best to hedge or trade in such an environment, then one of our upcoming seminars is likely to be of interest. Whether you're new to the industry or a veteran, you'll not only learn the tools and tricks of the trade but also have the opportunity to network with other industry professionals.

As Oil Prices Decline, Who is Well Hedged and Who is Not?

 

Given the decline in oil prices we've recently received several inquiries asking who is well hedged and who is not, particularly among the various sovereign entities that have significant exposure to oil prices, both producers and consumers. As we've noted in numerous posts in the past (e.g. Sovereign Oil & Gas Hedging - A Different Perspective, those who generally have the most to gain, or lose, from hedging or not hedging are countries whose economies are heavily reliant on oil revenues i.e. OPEC members.

Can NASDAQ, SGX & SHFE Compete with CME & ICE in Energy Markets??

 

On Friday NASDAQ Futures (NFX) launched twenty-six “new” commodity contracts in an attempt to take market share from incumbents CME (NYMEX) and ICE. While we have yet to review any official data from NFX's Friday trading session, it appears that they are currently seeing some modest activity in their Brent and WTI futures, albeit with wider bid-ask spreads and smaller size than on the incumbent CME and ICE screens. As an example, as of this moment the bid-ask spreads for both September 2015 Brent and WTI futures on NFX are about $0.20 wide while the bid-ask spreads for Brent (on ICE) and WTI (on CME) are only a penny or two. Likewise, in the past few minutes the size on both the bid and ask for both Brent (ICE) and WTI (CME) are averaging close to 10 lots, the size on NFX appears to somewhat static with 1 lot on each side.

July 2015 Oil & Gas Hedging Update

 

Since our June update, crude oil and refined product forward prices have continued to decline, with a good amount of day-to-day volatility. One year forward prices for LLS crude oil have led the complex lower, down 1.03% while Brent and Dubai have declined by 0.48% and 0.24%, respectively. Month-over-month the WTI curve is unchanged. On a year-over-year basis, the one year forward curves for WTI, Brent, LLS and Dubai have declined by 39.57%, 39.72%, 38.68% and 40.29%, respectively.

The Fundamentals of Oil & Gas Hedging - Swaps

 

This post is the second in a series exploring common strategies which can be utilized by oil and gas producers to hedge their exposure to crude oil, natural gas and NGL prices. You can access the first post via the following link: The Fundamentals of Oil & Gas Hedging - Futures. In subsequent posts we'll explore how oil and gas producers can hedge with options and more complex strategies.

The Fundamentals of Oil & Gas Hedging - Futures

 

This post is the first in a series where we will be exploring the most common strategies used by oil and gas producers to hedge their exposure to crude oil, natural gas and NGL prices.  

Top 50 Energy Trading, Marketing & Risk Management Events of 2015

 

Whether you're an energy consumer, marketer, producer, processor, refiner, risk manager, trader, transporter, there are dozens of relevant conferences and events being held across the world throughout the remainder of 2015. While we clearly can't attend all of them, we will be attending many of them and would be glad to meet with you while we're there. If you woud like to meet with us during any of these events, please contact us. The following is the list of upcoming energy trading and risk management related conferences we're aware of as of today. 

June 2015 Oil & Gas Hedging Update - Highlight: Free Propane

 

Since our May update, forward crude oil and refined products have declined modestly. Since our update, one year forward prices for Dubai crude oil have led the complex lower, down 3.45% while Brent, LLS and WTI are lower by 3.32%, 2.60% and 2.355, respectively. On a year-over-year basis, the one year forward curves for WTI, Brent, LLS and Dubai are down by 35.85%, 36.65%, 34.18% and 37.42%, respectively.

Last Call - June 17-18 Energy Hedging, Risk & Trading Seminar

 

Due to requests from several attendees, we have extended the registration deadline for our upcoming Energy Hedging, Risk Management and Trading Seminar, which will take place June 17-18 in Houston. If you are interested do register now as seating is limited.

May 2015 Oil & Gas Hedging Update

 

Since our April monthly update, forward crude oil and refined products have continued to increase significantly. Since our last update, one year forward prices for WTI crude oil have led the complex higher, up 16.72% while Dubai, LLS and Brent are up 16.19%, 16.11% and 15.05%, respectively. On a year-over-year basis, the one year forward curves for WTI, Brent, LLS and Dubai are lower by 34.30%, 34.47%, 32.42% and 35.19% respectively.

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