Risk & Energy Risk Commodity Rankings 2014: Energy

Let's (not) get physical

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Another year of low volumes, another year of missed budgets; as was the case in 2012, the past 12 months have been a lean time for commodity derivatives businesses. Volatility in underlying energy markets remained muted and client activity was disappointing, say dealers. The trend was exemplified by crude oil, with Brent North Sea crude oil finishing the year at $110.80 a barrel – almost the same as its 2012 closing level. Three-month volatility implied by options on Brent stood at 17%