Derivatives trading rises in North American regional crudes

As North American crude oil production surges, liquid financial markets are developing around grades such as Louisiana Light Sweet, Western Canadian Select, Mars and Midland, changing the behaviour of both physical hedgers and financial traders. Alexander Osipovich reports

Oil hedging

In the past, North American energy companies looking to hedge their exposure to crude oil prices did not have a broad menu of instruments to choose from. By and large, they had two choices: West Texas Intermediate (WTI), the dominant benchmark for US domestic crude, based on prices at the storage hub of Cushing, Oklahoma, and North Sea Brent, the seaborne benchmark preferred internationally. Limited physical markets existed for other grades of crude oil, with various specifications and delivery

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

CTRM systems 2024: market update and vendor landscape

A Chartis report on commodity trading and risk management systems that considers its different applications and addresses the market and vendor dynamics to determine the long-term and structural impacts of the overarching market evolution on the…

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

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here