- Crude flat-price and forward curve have crossed the $50 threshold which points to a global recovery.
Read more Jan 10, 2021
- Both the flat price and forward curve for crude (WTI) have rallied in the past month, and point to a global recovery and possible tightness out the curve.
Read more Dec 14, 2020
- Q3 2020 was challenging due to the pandemic, and a slump in natural gas prices.
- However, producers should be increasingly optimistic about Q4 onward as a sharp rally in natural gas provides hedging opportunities.
- Both flat price and forward curve structure provide the opportunity to lock-in margin.
Read more Dec 7, 2020
- After an extremely difficult first quarter, with simultaneous supply and demand shocks, oil market forward pricing now suggests potential stability for 2H 2020.
- WTI and domestic grades have flipped from deep contango to flat curves due to cuts from both domestic and OPEC+ producers.
- However, further COVID-19 flare ups, terminal demand and negative production economics loom as risk factors out the curve.
Read more July 27, 2020
- Banks have been slowly migrating manual processes to new FinTech platforms, to unlock efficiency gains and improve client experiences.
- The recent public health crisis has only increased the need for modern technology platforms to support critical business functions like client hedging.
- Following in the footsteps of other asset classes moving from paper processes to digital platforms, commodities is next.
Read more May 11, 2020
- Global oil and gas markets experienced simultaneous supply side and demand side shocks during 1Q 2020.
- US shale E&Ps were particularly hard hit by this market dislocation.
- Our analysis of 8 oil focused producers highlights the crucial role of hedging in positioning those companies to weather the storm, and prosper in the future.
Read more March 27, 2020
- With the advent of organized commodities markets, active trading created price volatility, and ultimately the desire to manage and mitigate commodity price risks.
- Historical hedging practices combined with an unfriendly US accounting framework resulted in decades of suboptimal commodities hedging practices and outcomes.
- A recent US accounting standards change provides numerous improvements, some of which are particularly favorable to commodities hedging.
- We expect these accounting changes will cause an increase in commodities hedging, and a shift in hedging practices that will improve outcomes.
Read more January 22, 2018
- The U.S. Federal Reserve has begun the process of normalizing interest rates following massive quantitative easing during the Great Recession.
- Achieving rate normalization is essential to bolster confidence in the economy and will reinstate a normal yield curve after a decade when it was flat.
- Currently on a path for three increases in 2017, the pace of rate hikes could accelerate if the effect of President Trump’s tax cuts and fiscal stimulus are felt before 2018.
- The Republican reform agenda contains multiple opportunities for Fed reform, which could alter or potentially derail the current path towards rate normalization.