Time to get physical

With demand for energy on the increase, political instability in a number of oil producing nations, and difficulties in sourcing new energy supplies, oil, gas and electricity prices are likely to remain high and volatile. Keen to take full advantage of a profitable market, a number of banks are trading, or seeking to trade, physical energy assets. Although banks are mainly looking to take advantage of physical energy contracts - say, exploiting pricing inefficiencies in long-term contracts -