
04 July 2007
Brent oil contracts have been in a pickle as players try and unravel the legalities of long dated options products.
Brent oil has been the benchmark for sometime, but recently prices have stalled and this is why. Brent often traded many times over its physical capacity and much of this was due to a large options market in Brent. The defualt position for most of these options trades was to refer to a Forties price(Another oil field) . For most of the Brent trading life this has worked well as Forties has traded at a discount to Brent and was often linked to Brent but at a lower level. However, the recent opening of the new field has seen Forties oil start trading at a premium to Brent and so players are now defaulting on their Brent options and trading basis risk on Forties. Again this has not proved to be great because Platts (the oil publisher) is not keen on publishing Forties prices.
Lawyers industry experts are getting involved but it could be a while before the market returns to normal.
50 %
POWER PRICE UPDATE
 
16 December 2004
At this time of year, traders are looking to square out positions in order to crystallize bonuses. They also look at next year, as to the clever plays in which they can make some money  
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We have reached peak oil .... again?
 
31 July 2009
Another article in the press this week suggests that we face peak oil imminently (we say another article because various academics have been reporting this fact periodically over the past few years). In any event, whether peak oil (the point at which growth in
supply is less than the growth in demand) occurred this week, last month or last year, the point is we have, or are about to, reach a turning point and something ought to be done.
 
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All Quiet....
 
30 July 2010
A very quiet day in the UK energy markets which saw very little traded during the period - hardly surprising given the combination of usual Friday slowdown, holidays, a comfortable system as well it being the last traded day of the month.  
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Year to Date (week 7) Lows
 
22 February 2010
With the cold spell already priced into the curve and with bearish fuel prices, the power market hit year lows. At the same time, the season differentials narrowed giving the curve a smoother appearance.  
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Gains Seen Across the Curve
 
21 December 2009
There was no sign of an early Christmas in the power market on Friday with a 'flurry' of trading resulting in gains across the power curve.  
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