Sovereign hedging picks up as developing countries end fuel subsidies

A push to eliminate fuel subsidies across much of Africa, the Middle East and Asia is raising interest in the use of commodity hedging by governments as a way of containing social unrest. But it remains a challenge to get sovereign commodity hedging deals done, finds Alexander Osipovich

Oil barrels

To much of the general public, the use of derivatives is seen as a dark art practiced by mysterious financial wizards. Often, this activity bursts into the spotlight only when things go wrong – for example, the $6 billion ‘London whale' loss at JP Morgan in 2012, or the €4.9 billion equity derivatives loss uncovered at Société Générale in January 2008. As a result, citizens may be understandably nervous upon learning that their own governments are trading derivatives.

But that's precisely what

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Chartis Energy50 2023

The latest iteration of Chartis' Energy50 2023 ranking and report considers the key issues in today’s energy space, and assesses the vendors operating within it

2021 brings big changes to the carbon market landscape

ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis

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