A single pipeline hub in Louisiana sets the benchmark price for gas across an entire continent – understanding why says a lot about how this market, and the systems built to trade it, actually work. Energy Trading & Risk Management Insights Natural gas is one of the largest, most established
Before options, swaps, and exotic structures ever enter the picture, energy trading rests on a small set of core submarkets – and getting those fundamentals right is what makes everything built on top of them work. Energy Trading & Risk Management Insights It’s tempting to think of energy trading as
An airline doesn’t fly on hope that jet fuel prices stay flat. Here’s how hedging instruments, and the systems that manage them, actually protect a business from the volatility that commodities are famous for. Energy Trading & Risk Management Insights Commodity prices move in ways equity or currency prices simply
Before a barrel of crude ever reaches a trading screen, it passes through a physical chain of wellheads, separators, pipelines, and gas plants – and understanding that chain is what makes ETRM data actually make sense. Energy Trading & Risk Management Insights It’s easy to think of oil and gas
Commodities are consistently the most volatile major asset class – here’s how energy trading desks actually measure that risk, and what they do about it once they know the number. Energy Trading & Risk Management Insights Of the four major trading asset classes – equity, interest rate, currency, and commodities
A single oil trade quietly passes through more hands, checks, and systems than most people outside the industry ever realize – here’s what actually happens between “deal done” and “cash received.” Energy Trading & Risk Management Insights When a trader agrees a price with a counterparty over the phone or
A practical walk-through of the stochastic models behind spot and forward price behavior – and why every one of them comes with a built-in limitation. Energy Trading & Risk Management Insights Every ETRM system, no matter how sophisticated its user interface or how fast its deal capture engine runs, is
How a power generator with below-average efficiency can still turn a profit – not by predicting prices, but by trading the spread between fuel and electricity. Energy Trading & Risk Management Insights Ask most traders how to make money in energy markets and the instinct is to try to predict
Every energy trading desk eventually runs into the same question: if a company buys crude oil or natural gas from three different regional benchmarks instead of one, is it actually reducing risk, or just spreading the same risk across a wider surface? The intuitive answer is “diversification always helps.” The