Editor's letter
Congratulations on surviving another year in the volatile energy markets! With office parties well and truly over and annual bonuses (hopefully still) in the bank, it's time to look ahead at what 2007 might bring.
Taking the pivotal oil markets as a guide, it would seem unlikely that prices anywhere in the complex are going to fall significantly this year. The traditionally conservative US Energy Information Administration expects WTI to average just above $65 a barrel (bbl) in 2007, slightly below last year's average of around $66/bbl, but well above the 2005 price of $56.49/bbl and the 2004 price of $41.44/bbl.
Meanwhile the Henry Hub price is expected to average $7.87 per thousand cubic feet (mcf) in 2007 up from $7.06/mcf in 2006. As our Special Report on natural gas discusses, storage capacity is a growing concern in the US, with some experts believing that new build is unlikely to take place early enough to alleviate price spikes if there are supply disruptions or a cold winter to hike demand in the coming months.
Our gas report also questions Russia's ability to supply what Europe is expecting in the short-term. More positive though are developments in European gas trading, particularly in Germany, which, as one expert commentator says, is finally beginning to look like a success story.
Also in this issue, we bring you a special feature looking at some of the most interesting structured deals to have taken place in the energy markets in recent months. The six deals we feature have all broken new ground in different areas and are a testament to the talent in this sector.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules that were originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
UK investment firms feeling the heat on prudential rules
Signs firms are falling behind FCA’s expectations on wind-down and liquidity risk management