Archive for the ‘trading’ Category

Where’s the silver lining? Metals market airs concerns over global benchmark process

Regulation. Regulation. Regulation. Once again it is being blamed for the London Bullion Market Association Silver Price — operated and administrated by CME Group and Thomson/Reuters — settling around 6% below the spot price January 28. A matter of some contention across the market.

The jury is well and truly out on whether or not it is the fault of the system, or just another headache embedded by over-regulation.

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Against the grain: Agriculture grapples with price pressures

The gathering storm swirling around commodity markets augers of troubled times ahead. For agriculture, beset by the common concerns of currency fears, counterparty risk, an increased regulatory environment and once-bitten-twice-shy financial institutions, the climate is compounded by very real and entirely unique challenges.

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Dollar Tree, Dollar General, King Dollar … and now, Dollar Diesel in the US

Big-time refined product traders are now shopping at the dollar store for their diesel. Platts assessed the spot market of benchmark US Gulf Coast ultra low sulfur diesel at exactly $1/gal on Wednesday, Dec. 16.

Not $1.0014/gal. Not 99.93 cents/gal. Not $1.0001/gal. Nope. $1/gal on the mark.

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Rainy days and airlines — there’s probably a song here

Jet fuel may be half the price it was a year ago, but airlines used to so many sad-song years aren’t taking anything for granted. Just look at the semi-annual jet fuel forum held in always-sunny Cancun last week.

Where it was raining.

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Look to Mexico for some of the best oil market story lines through 2020

“Reform” is one of those words that means anything you want it to mean. It’s been deployed in so many political fights, it has really lost its meaning in most contexts. I suppose some people still say a teen car thief is sent off to “reform school,” but I doubt it.

Here in Mexico City, that word is loaded. I’m writing this 12 floors up from the Paseo de la Reforma, the grand boulevard named for the civil war between liberals and conservatives here in the 1850s and 1860s.

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Don’t lose your head over bad times — the oil markets will sort everything out

Back in the day six weeks ago, I used to tell this joke when I was explaining how Platts was sending me on the road for the rest of the year to get the pulse of the oil markets.

I hate to travel, and I don’t like people, so this is perfect for me.

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Data downpour to reveal all in EU gas and power markets

EU energy regulators are about to find out what really goes on in the wholesale gas and electricity markets, as a new trade reporting obligation starts on October 7. This is a huge step toward more transparent markets, but what will regulators do with the data?

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Paper and barrels, pushing and pulling oil prices: Petrodollars

It’s an old debate: Is it fundamentals or trading that primarily drive oil prices? As John Kingston, previously of Platts and now president of the McGraw Hill Financial Global Institute, explains in this week’s Oilgram News column, Petrodollars, it’s not always an either/or debate.

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Banks see second quarter revenue dip from commodities

Pinning down the financial performance of energy commodity trading at top financial institutions is complicated by the manner in which banks segment their operations and lump together certain revenue numbers.

While differences exist from bank to bank, for the most part the big banks place commodity trading within their fixed-income unit of their investment bank division. Low commodity prices, less volatility, and thus lower volumes traded, have all had an impact.

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In the maelstrom of oil price news, has bias triggered trading mistakes? Petrodollars

In this week’s Oilgram News column, Petrodollars, Ned Molloy asks the question, have emotions and confirmation bias triggered trading mistakes in the maelstrom of oil price news?

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