Tag: Community

Rethinking CTRM – Part Two

New Approaches to Design Commodity Trading and Risk Management (CTRM) and Commodity Management (CM) software is very complex because the business is itself extremely complex, often non-standard and constantly evolving.  In order to deal with this, the software products devised and marketed by the vendors are usually extremely configurable by design. By making their products configurable, the vendor can reach a larger group of customers all with differing requirements across the industry and hence, extend the potential market for the software product, ensuring that it can be a financial and commercial success – as it has to be to be... continue reading

EIA forecasts renewables will be fastest growing source of electricity generation

EIA expects non-hydroelectric renewable energy resources such as solar and wind will be the fastest growing source of U.S. electricity generation for at least the next two years. EIA’s January 2019 Short-Term Energy Outlook (STEO) forecasts that electricity generation from utility-scale solar generating units will grow by 10% in 2019 and by 17% in 2020. According to the January STEO, wind generation will grow by 12% and 14% during the next two years. EIA forecasts total U.S. electricity generation across all fuels will fall by 2% this year and then show very little growth in 2020. Source: Today in Energy... continue reading

Report on Nordic power market default

A report has been published by Finanstilsynet, the Norwegian National Competent Authority, on the issues that contributed to a large default that took place last September 2018 on the Nordic power market (see here). The report identifies issues with the exchange operator who, according to this report on Reuters, relied too heavily on resources in … Continue reading → Source: Energy Trading Regulation – Report on Nordic power market default... continue reading

EIA expects relatively flat natural gas prices, continued record production through 2020

EIA’s January 2019 Short-Term Energy Outlook (STEO) expects several U.S. natural gas market trends from 2018 to continue into 2019 and 2020, including relatively stable Henry Hub natural gas prices and increasing natural gas production and exports. According to the STEO, total U.S. natural gas consumption is expected to increase slightly through 2020, with increases in the electric and industrial sectors offsetting decreases in the residential and commercial sectors. Source: Today in Energy – EIA expects relatively flat natural gas prices, continued record production through 2020... continue reading

Geopolitical tremors mean a choppy outlook for oil in 2019

Get used to more scary oil market volatility in 2019. This is the message coming from leading industry strategists and forecasters after a bruising end to last year, when Brent crude dipped below $50/b. Although the benchmark has recovered along with major global stock markets, forecasters are concerned about the prospects of a sustained rebound. Unpredictable geopolitical upheavals like Brexit and US President Donald Trump’s trade wars are expected to weigh more heavily on sentiment than the fundamentals of supply and demand. “One of the key lessons learned in 2018, painfully by some, is that market sentiment can shift violently... continue reading

Less volatile gas prices give newest US LNG plant smoother start-up

US LNG export projects, whether brownfield or greenfield, are multi-year, billion dollar projects. While construction timelines dictate their commissioning schedule, there can be inconvenient and convenient times in the unpredictable natural gas market to begin this testing. The two most recent additions to the US fleet of natural gas liquefaction and export facilities – Cove Point LNG and Corpus Christi LNG – demonstrate this. They began operations about one year apart during the winter months, when gas prices are typically elevated, but disparate conditions over the two winters meant vastly different feedgas costs in the critical ramp-up phase. Corpus Christi,... continue reading

EIA forecasts world crude oil prices to rise gradually, averaging $65 per barrel in 2020

EIA’s January Short-Term Energy Outlook forecasts that world benchmark Brent crude oil will average $61 per barrel (b) in 2019 and $65/b in 2020, an increase from the end of 2018, but overall it will remain lower than the 2018 average of $71/b. U.S. benchmark West Texas Intermediate (WTI) crude oil prices were $8/b lower than Brent prices in December 2018, and EIA expects this difference to narrow to $4/b in the fourth quarter of 2019 and throughout 2020. Source: Today in Energy – EIA forecasts world crude oil prices to rise gradually, averaging per barrel in 2020... continue reading

Insight from Shanghai: Waking up from the Chinese dream

There have been better starts to the New Year. The December Caixin Manufacturing PMI, a survey of Chinese manufacturing activity, contracted for the first time in 17 months. Soon after, reports began to emerge that China’s growth target will be lower than that set for 2018. Apple, once the world’s most valuable company, sent shock waves across financial markets. It revised down its earnings for the end of 2018 citing an economic slowdown in China that was significantly greater than they had anticipated due to weak demand and the impact of trade tensions with the US. While the dispute with... continue reading

Second fine in Denmark for capacity hoarding

Yesterday the Danish Utility Regulator announced that Neas Energy A/S has accepted a fine of 150,000 DKK (approximately 20,000 euros) and 3,000 DKK (approximately 400 euros) disgorgement for capacity hoarding on 4 occasions in 2015. The press release from the DUR can be found here. This follows a fine for similar reasons levied in December (see … Continue reading → Source: Energy Trading Regulation – Second fine in Denmark for capacity hoarding... continue reading

Changes in marine fuel sulfur limits will put temporary upward pressure on diesel margins

The January 2019 Short-Term Energy Outlook (STEO), released at noon today, for the first time includes analysis of the effect that upcoming changes to marine fuel sulfur specifications will have on crude oil and petroleum product markets. Beginning January 1, 2020, the International Maritime Organization’s (IMO) new regulations limit the sulfur content in marine fuels used by ocean-going vessels to 0.5% by volume, a reduction from the previous limit of 3.5%. The change in fuel specification is expected to put upward pressure on diesel margins and modest upward pressure on crude oil prices in late 2019 and early 2020. EIA’s... continue reading

In the LOOP: US crude exports to Europe driven higher by spreads, tanker rates

Favorable freight economics have helped drive up demand for light, sweet US crude oil in Europe and an expanding list of countries, including Germany, are looking to import barrels from the US Gulf Coast. USGC-to-Europe crude flows have been on the rise recently, with some market participants expecting up to 800,000 b/d to land in Europe in March. At least 5.2 million barrels (roughly 740,000 b/d) of crude was sent from the US to Northwest Europe and Mediterranean during the week ending January 11, according to S&P Global Analytics data. In October, the latest month for which data is available,... continue reading

Natural gas-burning power plant operations vary during periods of cold weather

Power generation in New England and New York is largely dependent on natural gas, which accounts for more than half of the region’s electricity generating capacity. About 58% of New England’s natural gas capacity has dual-fuel capability, meaning it can switch to other fuels such as petroleum-based fuels. Data from the U.S. Environmental Protection Agency’s (EPA) continuous emissions monitoring system (CEMS) reveals how certain plants in New England and New York switch between fuels in certain situations. Source: Today in Energy – Natural gas-burning power plant operations vary during periods of cold weather... continue reading

Shell pops the hood on its energy transition strategy: Fuel for Thought

The internal combustion engine faces an expiry date as the transportation sector moves decidedly towards electrification. Plastics and heavy transportation will not sustain high oil demand on their own. The question is whether the inevitable energy transition from liquid transportation fuels to electricity will take a few years or several decades. Either way it poses an existential threat for oil companies. For oil majors, the latest climate-related setback has been financial in nature, with institutional investors, including sovereign wealth funds, concerned about long-term positions in fossil fuels. In October 2018, BP’s Bob Dudley publicly defended oil majors, in light of... continue reading

Aramco’s IPO looks believable again after Saudi speaks up about reserves

Saudi Arabia has finally silenced its peak oil critics and simultaneously revived interest in its stalled $2 trillion plan to IPO state-owned producer Aramco. The kingdom revealed last week it has enough crude to pump at current rates for at least another 70 years. At the end of 2017, Saudi oil reserves stood at an eye-watering 268.5 billion barrels, up from previous estimates of 266.4 billion. By comparison, the UK’s remaining cache of commercially retrievable oil under the seabed of the North Sea could be almost completely drained in a couple of decades. The updated figures were no surprise for... continue reading

Support Specialist Commodity Trade & Risk Software

Overview   Agiboo is looking for a dynamic individual who will provide software application support to our rapidly growing customer base. You’ll be a perfect fit if you possess exceptional customer support skills that can be applied to a commodity trading and risk management software system along with the technical ability to monitor and trouble-shoot Web based applications. This job requires you to learn quickly and use that knowledge to assist customers to better use the Agiblocks Commodity Trade and Risk Management product along with monitoring Agiblocks MS Web server based hosted systems.   This is a position where you... continue reading

S&P 500 extends winning streak to fifth session

Source: Financial Times, 12th January 2019 Dollar rebounds after steep fall; Brent oil hits one-month high Read the full article on FT.com Source: Commodities Now – Power and Energy – S&P 500 extends winning streak to fifth session... continue reading