DOCSLIB.ORG

Section C COMMODITY TRADING and FINANCIAL MARKETS

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Section C COMMODITY TRADING and FINANCIAL MARKETS Section C COMMODITY TRADING AND FINANCIAL MARKETS Chapter 10 Chapter 11 Managing risk Funding commodity trading p.3 p.11 2 Section C. Commodity Trading and Financial Markets Chapter Introduction Commodity Trading and Financial Markets INTRODUCTION This guide sets out to present a thumbnail portrait reflected here. Deliberately and inevitably, we have of commodities trading. The aim is to inform readers focused on energy, metals and minerals trading, and about the specialist nature of the business and have made only passing reference to trading the services it provides, as well as to dispel some of agricultural products. the myths that have grown up around trading over We have tried as far as possible to capture factors the years. that are generic to commodity trading firms and It makes clear that this is at its core, a physical their basic functions and techniques. and logistical business, and not the dematerialised, This section drills into the more challenging details speculative activity that is sometimes suggested. of risk management, price-hedging and finance. The Trafigura Group, one of the world’s largest independent commodity traders, with a focus on oil and petroleum products and metals and minerals, is at the centre of the narrative. The company focus is designed to provide concrete case studies and illustrations. We do not claim that this is a definitive guide to all facets of the industry. Other firms than Trafigura will have their own unique characteristics, which are not 3 Section C. Commodity Trading and Financial Markets Chapter 10. Managing risk Chapter 10 MANAGING RISK Risk management is a core competence for trading firms. They store and transport physical assets across the globe and earn slim margins on high-value, high-volume transactions. They use sophisticated risk management techniques to link revenues to costs and operate effectively in volatile markets. Major traders have annual turnover that dwarfs their The integrated nature of their operations provides own capital resources and puts them firmly in the ranks another natural hedge within the overall business. of the world’s largest companies. They rely on sizeable In the copper market, for instance, a decline in end- infusions of short-term capital to buy the demand for the refined metal may or may not lead Trading firms can commodities they need to trade. This would to reduced smelter production and lower demand only stay in business not be available to them were they not able for concentrate. It all depends on market dynamics. as competitive, to demonstrate to financial institutions the Either way, the demand for storage (either of low-risk operations sustainability of their business models. concentrates or refined copper) is likely to increase. Managing financial risk effectively is In an integrated trading operation, lower demand therefore an absolute priority for trading firms. They for shipping a commodity is offset by increased use derivative markets to hedge against absolute demand for storing it. price (also known as flat price) risk. They also take But diversification and integration provide little out commercial credit risk and political risk policies protection in the event of a systemic change in market in the insurance market. sentiment. Both the global financial crisis and the economic slowdown in China would have been Diversification and integration reduce risk catastrophic for any trading company that took no Global trading firms handle a variety of commodities additional steps to hedge its activities. and manage processes across the supply chain. As diversified operations they enjoy limited natural protection from commodity price changes. Different price pressures in various commodity markets will be offset by the breadth of their activities. Most are trading both primary and secondary commodities and will usually have their own storage facilities. 4 Section C. Commodity Trading and Financial Markets Chapter 10. Managing risk HEDGING AGAINST FLAT PRICE RISK Physical transaction Agree to sell crude in 3 months $60 at Brent +150 cents Hedge Sell Brent futures at $60 / contract TRANSACTION DATE BRENT Physical transaction Deliver crude – receive $56.50 / barrel $55 Hedge Buy Brent futures at $55 / contract Realised profit = $5 DELIVERY DATE BRENT Net revenue $61.50 ($56.50 + $5) Managing flat price risk It can avoid this by simultaneously taking out The practice of hedging is fundamental to commodity futures contracts against both parts of the transaction. trading. Trading firms like Trafigura systematically It fixes the purchase price in advance by buying futures eliminate their flat price exposure – the risk of a on the transaction date and selling them back when change in the benchmark price for a barrel of oil or it collects the shipment. At the same time, it fixes the a tonne of copper concentrate. sale price by selling futures on the transaction date In a typical transaction, a trader will agree purchase and buying them back when the crude has shipped. and sale prices with two different counterparties to The simplified example above illustrates how traders lock in a profit margin. The transaction is agreed before use futures to remove flat price risk when selling a shipment and the convention is that final prices are physical commodity. not fixed until the commodity is delivered. So on the Hedging flat price risk does not eliminate price risk transaction date, the parties agree both trades at fixed altogether because physical price and futures prices margins against a benchmark index price. For crude, don’t stay completely aligned, but it does leave the for instance, the purchase price might be set at 50 trading firm with a smaller, much more manageable basis points over the Brent index on the day the trader market risk. This is known as basis risk. takes delivery and the sale price at 150 basis points over Brent when the shipment is delivered. Left like this the transaction leaves the trading firm exposed to fluctuations in the actual price of Brent crude. It clearly has to take delivery of the crude before it can ship it, so if the Brent price is higher on the earlier date it could make a substantial loss. 5 Section C. Commodity Trading and Financial Markets Chapter 10. Managing risk Managing basis risk As LNG develops, gas may be traded internationally In essence, basis risk is the difference in the price in sufficient volumes to offset regional price differences, behaviour between the physical commodity and but a global gas price has not happened yet. For now, the hedging instrument. Managing basis risk is core LNG traders have more limited arbitrage opportunities. to the trader’s skill set. Understanding the dynamics In practice, they must decide on the final destination of basis behaviour is the source of profitable for their LNG on the transaction date and establish trading opportunities. the relevant regional hedge. Basis risk arises because, in practice, There is no such the price behaviour of a hedging Physical markets and financial markets thing as the perfect instrument will never exactly correspond The futures market provides valuable information about hedge to that of the physical commodity. expected future supply and demand on which producers, Traders typically use futures contracts consumers and traders can act today. The market is to hedge physical transactions. These are notional, reflecting today’s environment, with a futures contract standardised commodities with specific delivery priced according to the opportunity cost of storing the dates, delivery locations and quality characteristics. physical commodity until its delivery date. Standardisation makes futures much more tradeable, Events change perceptions, so futures should not which reduces transaction costs and execution risks be seen as an accurate guide to changes in the associated with hedging, but also differentiates physical market. However, over time the price of a them from physical commodities. futures contract will always converge with the When trading firms buy and sell physical commodities physical market price. This is because on the day they are acquiring specific assets at particular locations the future contract expires it becomes physically on precise dates. The physical nature of the asset makes deliverable. Physical delivery almost never happens it unique. A Brent futures contract, based on a notional in practice, but the fact that it is possible imposes specification of light North Sea oil delivered at a precise a price discipline on futures contracts. location, will never be an exact match for, say, a cargo So, for example, the closing price for a monthly of heavy Middle East crude. Both prices move roughly futures contract for Brent crude for delivery in June in tandem so basis risk is considerably lower than flat is the same as the spot Brent price in the physical price risk. But because they are priced in linked but market in June. If the prices differed, traders would distinct markets, technical factors and supply and buy in the cheaper market and sell in the market with demand differences result in fluctuations in the the higher price. Supply and demand would quickly differential between their prices. eliminate this arbitrage opening. Global trading firms take advantage The possibility of delivery or receipt is an essential In global of these fluctuations to maximise their feature of almost all futures contracts, and most commodities profit margins. With around half of all stipulate a specific geographic delivery point. For WTI markets, basis relationships international crude priced off the Brent crude, the delivery point is a small town The possibility of provide profitable benchmark contract, there is ample in Oklahoma (Cushing), for US natural gas physical delivery trading opportunity to take advantage of these it is Henry Hub which is, notionally at imposes a price opportunities changing differentials. The global nature least, at a small town in Louisiana (Erath). discipline on of the crude oil market makes global Brent crude is deliverable at various financial markets arbitrage, with oil cargoes circling the world seeking locations around the North Sea because of the the best price, a profitable activity for traders.
Load more

Recommended publications
  • Middle East Oil Pricing Systems in Flux Introduction
    May 2021: ISSUE 128 MIDDLE EAST OIL PRICING SYSTEMS IN FLUX INTRODUCTION ........................................................................................................................................................................ 2 THE GULF/ASIA BENCHMARKS: SETTING THE SCENE...................................................................................................... 5 Adi Imsirovic THE SHIFT IN CRUDE AND PRODUCT FLOWS ..................................................................................................................... 8 Reid l'Anson and Kevin Wright THE DUBAI BENCHMARK: EVOLUTION AND RESILIENCE ............................................................................................... 12 Dave Ernsberger MIDDLE EAST AND ASIA OIL PRICING—BENCHMARKS AND TRADING OPPORTUNITIES......................................... 15 Paul Young THE PROSPECTS OF MURBAN AS A BENCHMARK .......................................................................................................... 18 Michael Wittner IFAD: A LURCHING START IN A SANDY ROAD .................................................................................................................. 22 Jorge Montepeque THE SECOND SPLIT: BASRAH MEDIUM AND THE CHALLENGE OF IRAQI CRUDE QUALITY...................................... 29 Ahmed Mehdi CHINA’S SHANGHAI INE CRUDE FUTURES: HAPPY ACCIDENT VERSUS OVERDESIGN ............................................. 33 Tom Reed FUJAIRAH’S RISE TO PROMINENCE ..................................................................................................................................
    [Show full text]
  • Redstone Commodity Update Q3
    Welcome to the Redstone Commodity Update 2020: Q3 Welcome to the Redstone Commodity Moves Update Q3 2020, another quarter in a year that has been strongly defined by the pandemic. Overall recruitment levels across the board are still down, although we have seen some pockets of hiring intent. There appears to be a general acknowledgement across all market segments that growth must still be encouraged and planned for, this has taken the form in some quite senior / structural moves. The types of hires witnessed tend to pre-empt more mid-junior levels hires within the same companies in following quarters, which leaves us predicting a stronger than expected finish to Q4 2020 and start to Q1 2021 than we had previously planned for coming out of Q2. The highest volume of moves tracked fell to the energy markets, notably, within power and gas and not within the traditional oil focused roles, overall, we are starting to see greater progress towards carbon neutrality targets. Banks such as ABN, BNP and SocGen have all reduced / pulled out providing commodity trade finance, we can expect competition for the acquiring of finance lines to heat up in the coming months until either new lenders step into the market or more traditional lenders swallow up much of the market. We must also be aware of the potential impact of the US elections on global trade as countries such as Great Britain and China (amongst others) await the outcome of the impending election. Many national trade strategies and corporate investment strategies will hinge on this result in a way that no previous election has.
    [Show full text]
  • Financing Options in the Oil and Gas Industry, Practical Law UK Practice Note
    Financing options in the oil and gas industry, Practical Law UK Practice Note... Financing options in the oil and gas industry by Suzanne Szczetnikowicz and John Dewar, Milbank, Tweed, Hadley & McCloy LLP and Practical Law Finance. Practice notes | Maintained | United Kingdom Scope of this note Industry overview Upstream What is an upstream oil and gas project? Typical equity structure Relationship with the state Key commercial contracts in an upstream project Specific risks in financing an upstream project Sources of financing in the upstream sector Midstream, downstream and integrated projects Typical equity structures What is a midstream oil and gas project? Specific risks in financing a midstream project What is a downstream oil and gas project? Specific risks in financing a downstream project Integrated projects Sources of financing in midstream, downstream and integrated projects Multi-sourced project finance Shareholder funding Equity bridge financing Additional sources of financing Other financing considerations for the oil and gas sectors Expansion financings Hedging Refinancing Current market trends A note on the structures and financing options and risks typically associated with the oil and gas industry. © 2018 Thomson Reuters. All rights reserved. 1 Financing options in the oil and gas industry, Practical Law UK Practice Note... Scope of this note This note considers the structures, financing options and risks typically associated with the oil and gas industry. It is written from the perspective of a lawyer seeking to structure a project that is capable of being financed and also addresses the aspects of funding various components of the industry from exploration and extraction to refining, processing, storage and transportation.
    [Show full text]
  • Amici Brief File Stamped 020718(Pdf)
    Case 17-2233, Document 173-2, 02/07/2018, 2231672, Page1 of 39 17-2233 IN THE United States Court of Appeals FOR THE SECOND CIRCUIT >> >> PRIME INTERNATIONAL TRADING LTD., ON BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, WHITE OAKS FUND LP, ON BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, KEVIN MCDONNELL, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED,ANTHONY INSINGA, AND ALL OTHERS SIMILARLY SITUATED, ROBERT MICHIELS, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, JOHN DEVIVO, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, NEIL TAYLOR, AARON SCHINDLER, PORT 22, LLC, ATLANTIC TRADING USA LLC, XAVIER LAURENS, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, Plaintiffs-Appellants, (caption continued on inside cover) On Appeal from the United States District Court for the Southern District of New York BRIEF FOR THE CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, THE SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION, THE INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION, AND THE FUTURES INDUSTRY ASSOCIATION AS AMICI CURIAE IN SUPPORT OF DEFENDANTS-APPELLEES AND AFFIRMANCE GEORGE T. CONWAY III WACHTELL, LIPTON, ROSEN & KATZ 51 West 52nd Street New York, New York 10019 (212) 403–1000 Attorneys for Amici Curiae Case 17-2233, Document 173-2, 02/07/2018, 2231672, Page2 of 39 MICHAEL SEVY, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED, GREGORY H. SMITH, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED, PATRICIA BENVENUTO, ON BEHALF OF HERSELF AND ALL OTHERS SIMI-
    [Show full text]
  • Commodities Price Volatity in the 2000S Unpacking Financialisation Samuel K
    Commodities Price Volatity in the 2000s Unpacking financialisation Samuel K. GAYI Special Unit on Commodities UNCTAD 0utline • Context – Price trends, 1960-2011 • New twists • Financialization – What is it? – Some concerns – Evidence – UNCTAD vs others • Refocus on fundamentals • Concluding remarks Context Overview of Price trends 1960-2011 Fig. 1: Non oil commodity price index in constant terms, 1960-2011 (2000 = 100) Fig. 2: Historical commodity real price indices, 1960-2011 600 500 400 300 Real price index, 2000=100 index, price Real 200 100 - 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 20082011e Food Tropical beverages Agricultural Raw Materials Minerals, Ores and Metals Crude petroleum Overview of price trends, 1960-2011 • Since 1960: real prices of non-fuel commodities relatively stable (highest peak in 1974 - oil shock); • 1980-2000: commodity prices volatile, but generally declined with temporary peaks in 1988 and 1997. • 1997—1999: Asian crisis contributed to slump in US $ prices for primary commodities of 20% (compared to 5% for manufactures) (Page & Hewitt, 2001); • By mid-2008, commodities had enjoyed 5-year price boom - longest & broadest rally of the post-World War II period, i.e., after almost 30 years of generally low but moderately fluctuating prices. • Relatively well established that there is a long-term downward decline in the relative prices of primary commodities vis-à-vis manufactures (Maizels, 1992). Overview of price trends (ii) • Since 1960, two major commodity price booms (1973-1980, & 2003- 2011); • Current (recent?) commodity price boom is different from 1970s boom. Note:1970s commodity price spikes were short- lived (Radetzki 2006; Kaplinsky and Farooki, 2009); • Historical data: significantly higher real prices for beverages and food commodities were recorded in the 1970s, relative to 2003 to 2011; • However, rise in commodity prices 2003-11, especially from 2006 to 2008, is particularly pronounced in the case of metals, crude oil and food (Fig.
    [Show full text]
  • Swiss Extractivism: Switzerland's Role in Zambia's Copper Sector*
    J. of Modern African Studies, , (), pp. – © Cambridge University Press . This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/./), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited. doi:./SX Swiss extractivism: Switzerland’s role in Zambia’s copper sector* GREGOR DOBLER University of Freiburg, Institut für Ethnologie, Werthmannstr. , Freiburg, Germany Email: [email protected] and RITA KESSELRING University of Basel, Ethnologisches Seminar, Münsterplatz , Basel, Switzerland Email: [email protected] ABSTRACT Switzerland is usually not looked upon as a substantial economic actor in Africa. Taking Zambian copper as a case study, we show how important Swiss companies have become in the global commodities trade and the services it depends on. While big Swiss trading firms such as Glencore and Trafigura have generated increasing scholarly and public interest, a multitude of Swiss companies is involved in logistics and transport of Zambian copper. Swiss extractivism, we argue, is a model case for trends in today’s global capitalism. We highlight that servicification, a crucial element of African mining regimes today, creates new and more flexible opportun- ities for international companies to capture value in global production networks. These opportunities partly rely on business-friendly regulation and tax regimes in Northern countries, a fact which makes companies potentially vulnerable to * Research for this article has been funded by SNIS, the Swiss Network for International Studies. We are grateful to all project partners in the Valueworks project. We finished the article as Fung Global Fellow at the Institute for International and Regional Studies (PIIRS), Princeton University (Rita Kesselring), and as Visitor at the Institute for Advanced Study, Princeton (Gregor Dobler); we are very grateful to both institutions for the inspiring writing environment they offered.
    [Show full text]
  • The Endgame for Commodity Traders Why Only the Biggest and Digitally Advanced Traders Will Thrive
    THE ENDGAME FOR COMMODITY TRADERS WHY ONLY THE BIGGEST AND DIGITALLY ADVANCED TRADERS WILL THRIVE Alexander Franke • Roland Rechtsteiner • Graham Sharp he commodity trading industry is a critical mass in one or more commodities confronting a new, less profitable reality. and the rest of the pack is widening. Within TAfter flatlining for several years, the a few years, the industry will have a different industry’s gross margins in 2016 dipped 4.5 profile – one that is even more dominated by percent to $42 billion, our research shows. the biggest players. (See Exhibit 1.) This decline is setting off a torrent of deal-making and speculation that is transforming the face of commodity WHY BIG MATTERS trading – with examples like Hong Kong-based Noble Group selling part of its business to the The beginning of the endgame started last global energy trader, Vitol; oil trader Gunvor in year with the decline in margins and took off talks with potential acquirers; and Swiss trading in earnest in 2017, as we predicted in our 2016 giant Glencore circling US grain trader Bunge. report, “Reimagining Commodity Trading.” As companies tried to adjust to the industry’s The industry’s endgame has started. From new economics, the clear edge for larger oil to agriculture, building scale is proving operations started to become evident. It didn’t to be the key competitive advantage for the matter if commodity traders had sprawling future. The largest trading companies – both global businesses diversified across various diversified firms and those concentrating commodities or if they specialized in one or two.
    [Show full text]
  • Mexico in the Time of COVID-19: an OPIS Primer on the Impact of the Virus Over the Country’S Fuel Market
    Mexico in the Time of COVID-19: an OPIS Primer on the Impact of the Virus Over the Country’s Fuel Market Your guide to diminishing prices and fuel demand Mexico in the Time of COVID-19 Leading Author Daniel Rodriguez Table of Contents OPIS Contributors Coronavirus Clouds Mexico’s Energy Reform ................................................................1 Justin Schneewind Eric Wieser A Historic Demand Crash ....................................................................................................2 OPIS Editors IHS Markit: Worst Case Drops Mexico’s Gasoline Sales to 1990 levels ...................3 Lisa Street Bridget Hunsucker KCS: Mexico Fuel Demand to Drop Up to 50% .............................................................4 IHS Markit ONEXPO: Retail Sales Drop 60% ......................................................................................4 Contirbuitors Carlos Cardenas ONEXPO: A Retail View on COVID-19 Challenges..........................................................5 Debnil Chowdhury Felipe Perez IHS Markit: USGC Fuel Prices to Remain Depressed Into 2021 .................................6 Kent Williamson Dimensioning the Threat ....................................................................................................7 Paulina Gallardo Pedro Martinez Mexico Maps Timeline for Returning to Normality ......................................................7 OPIS Director, Tales of Two Quarantines ...................................................................................................8 Refined
    [Show full text]
  • Na Mídia Brazil Sues Trafigura and Top Executives Over Petrobras Bribes
    Na Mídia 01/12/2020 | Global Investigations Review Brazil sues Trafigura and top executives over Petrobras bribes Sam Fry Brazilian prosecutors have accused Swiss commodities trader Trafigura and two of its top executives of bribing public officials to secure favourable oil deals. The Brazilian Federal Prosecution Service (MPF) announced on 30 November that it is seeking up to $196 million from Trafigura as well as the company’s current chief operating officer, Mike Wainwright, and 11 other individuals who allegedly took part in or benefitted from the scheme. DA #10726358 v1 The MPF alleges in its complaint filed with the federal court in Curitiba that Trafigura funnelled bribes worth $1.3 million to Petrobras executives in return for favourable rates on 31 separate oil deals that were negotiated in Houston in 2012 and 2013. Prosecutors claim that Petrobras missed out on revenue worth $37 million as a result of these sweetheart deals. Brazilian authorities are seeking damages from a dozen individuals besides Geneva-based Trafigura and company subsidiaries in Brazil, Panama, the Netherlands and Singapore. These individuals include two current members of Trafigura’s board of directors: chief operating officer Wainwright and global co-head of oil trading José Larocca. Wainwright, a UK national, has been Trafigura’s COO since 2008, according to the company’s website. Swiss-born Larocca, meanwhile, has been with Trafigura since 1994 and has represented his native Argentina as a show-jumper in three Olympic games, according to his company profile. The MPF also targeted Rodrigo Berkowitz, a former Houston-based Petrobras executive. He reportedly signed a plea bargain with Brazilian prosecutors in 2018 for accepting bribes from commodities trading companies Vitol, Glencore and Trafigura, and has pleaded guilty to a single money laundering conspiracy charge in the US, according to court documents unsealed on 30 November.
    [Show full text]
  • 17-2233, Document 114, 11/01/2017, 2162193, Page1 of 93 RECORD NO
    Case 17-2233, Document 114, 11/01/2017, 2162193, Page1 of 93 RECORD NO. 17-2233 In The United States Court of Appeals For The Second Circuit PRIME INTERNATIONAL TRADING, LTD., ON BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, WHITE OAKS FUND LP, ON BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, KEVIN MCDONNELL, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, ANTHONY INSINGA, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, ROBERT MICHIELS, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, JOHN DEVIVO, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, NEIL TAYLOR, AARON SCHINDLER, PORT 22,LLC, ATLANTIC TRADING USA, LLC, XAVIER LAURENS, ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, Plaintiffs – Appellants, MICHAEL SEVY, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED,, GREGORY H. SMITH, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED, PATRICIA BENVENUTO, ON BEHALF OF HERSELF AND ALL OTHERS SIMILARLY SITUATED, DAVID HARTER, ON BEHALF OF HIMSELF AND OTHER SIMILARLY SITUATED PLAINTIFFS, MELISSINOS EUPATRID LP, BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, FTC CAPITAL GMBH, ON BEHALF OF ITSELF AND ALL OTHERS SIMILARLY SITUATED, WILLIAM KARKUT, CHRISTOPHER CHARTIER, ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED, PRAETOR CAPITAL CAYMAN LTD., ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, PRAETOR CAPITAL MANAGEMENT LTD., ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, PRAETOR VII FUTURES AND OPTIONS MASTER FUND LTD., ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, PRAETOR VII FUTURES & OPTIONS FUND LTD., ON BEHALF OF THEMSELVES AND ALL OTHERS SIMILARLY SITUATED, Plaintiffs, v.
    [Show full text]
  • Pdf 503.91 Kb
    Ｎｅｗｓ Ｒｅｌｅａｓｅ July 29, 2021 ITOCHU ENEX Announces the Expansion of the Joint Study Framework on Ammonia as an Alternative Marine Fuel to Include 34 Companies and Organizations ITOCHU ENEX CO., LTD. (Headquartered in Chiyoda-ku, Tokyo; Kenji Okada, Representative Director, President and CEO; hereinafter "ITOCHU ENEX")established a joint study framework of 23 companies and organizations with the objective of collaboratively discussing common issues in pursuit of the utilization of ammonia as an alternative marine fuel (news release dated June 11, 2021). Recently, 11 companies and organizations have joined this joint study framework, expanding it to 34 companies. The 11 companies are Anglo Eastern Ship Management, BHP, Bureau Veritas, CMA-CGM, INPEX, JFE Steel, Lloyd's Register, Maersk, Navios Maritime, Rio Tinto and Vitol Asia. This expansion is an indicator of the high level of interest in the utilization of ammonia as an alternative maritime fuel. In 2021, the Joint Study Framework will discuss common issues including (1) Safety assessment of NH3 fuel ship under guideline, (2) Safety assessment of NH3 bunkering, (3) NH3 fuel specification, and (4) NET CO2 emission at NH3 production. The discussion has included collaborators from CF Industries, Nutrien and Yara, major ammonia producers. Going forward, the Joint Study Framework will seek to share opinions, view, expertise and experience with other ammonia producers, related international organizations, port authorities and regulators in potential bunkering countries. The establishment of the council is an important element not only in the verification and organization of common issues regarding the use of ammonia as a maritime fuel, which is a new challenge for maritime stakeholders, and also closely related to the integrated project of ITOCHU Corporation and its partner companies working to develop ships using ammonia fuels and establish a global ammonia supply chain.
    [Show full text]
  • United States District Court Southern District of Florida Miami Division
    Case 1:18-cv-20818-DPG Document 652 Entered on FLSD Docket 12/10/2018 Page 1 of 51 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION PDVSA US LITIGATION TRUST Plaintiff, v. LUKOIL PAN AMERICAS LLC; LUKOIL PETROLEUM LTD.; COLONIAL OIL INDUSTRIES, INC.; COLONIAL GROUP, INC.; GLENCORE LTD.; Case No. 1:18-cv-20818 (DPG) GLENCORE INTERNATIONAL, A.G.; GLENCORE ENERGY UK LTD.; MASEFIELD A.G.; TRAFIGURA A.G.; TRAFIGURA TRADING LLC; TRAFIGURA BEHEER B.V.; VITOL ENERGY (BERMUDA) LTD.; VITOL S.A.; VITOL, INC.; FRANCISCO MORILLO; LEONARDO BAQUERO; DANIEL LUTZ; LUIS LIENDO; JOHN RYAN; MARIA FERNANDA RODRIGUEZ; HELSINGE HOLDINGS, LLC; HELSINGE, INC.; HELSINGE LTD., SAINT- HÉLIER; WALTROP CONSULTANTS, C.A.; GODELHEIM, INC.; HORNBERG INC.; SOCIETE DOBERAN, S.A.; SOCIETE HEDISSON, S.A.; SOCIETE HELLIN, S.A.; GLENCORE DE VENEZUELA, C.A.; JEHU HOLDING INC.; ANDREW SUMMERS; MAXIMILIANO POVEDA; JOSE LAROCCA; LUIS ALVAREZ; GUSTAVO GABALDON; SERGIO DE LA VEGA; ANTONIO MAARRAOUI; CAMPO ELIAS PAEZ; PAUL ROSADO; BAC FLORIDA BANK; EFG INTERNATIONAL A.G.; BLUE BANK INTERNATIONAL N.V. Defendants. DEFENDANTS’ RESPONSE IN OPPOSITION TO THE TRUST’S OBJECTIONS TO THE MAGISTRATE JUDGE’S REPORT AND RECOMMENDATION Case 1:18-cv-20818-DPG Document 652 Entered on FLSD Docket 12/10/2018 Page 2 of 51 TABLE OF CONTENTS Page PRELIMINARY STATEMENT .....................................................................................................1 BACKGROUND .............................................................................................................................3
    [Show full text]