Boom and Bust, War and Peace, Growth and Decline
JANUARY 2015
Part One of Two
The Seven Ages of Oil: Boom and Bust, War and Peace, Growth and Decline
By Aiman El-Ramly
Powered by New products and Delisting of products Potential impact Changes to data attributes, data sources and data sources on data replacement of products Summary 2 5 7 8 9 9 5 7 9 10 11 11 11 12 12 13 13 14 14 15 16 16 16 17 17 17 18 18 20 20 22 22 23 23 24 25 25 26 26
January 2015 to Congress and Losing Energy Markets the World Dominating the Union Address: State of Merged with EEX Operated by Powernext are PEGAS Markets Assessments Platts to Launch Spot Metallocene Content to Platts Forward Curve Asia Platts Adds Gasoil Derivatives Fuel Oil Spreads Platts Assesses European East-West Orthoxylene Assessments Platts Introduces Daily European Page to Platts Forward Curve Europe Platts Adds Fuel Oil Derivatives Fuel Assessments Platts Launches US Sulfur Bunker Time for Fuel Oil Market Platts Introduces New Cut-off Crude Commentary Platts Introduces New US Shale Asphalt and Argus Bitumen Publications Argus Introduces Argus Americas Sulfur Bunker Assessments Argus Introduces New Russian Petroleum Gas Futures Contract NYMEX Lists Freight Route Liquid Transition to Low Sulfur Gasoil Contract ICE Futures Europe Completes MCX Begins Futures Trading in Crude Mini Platts to Discontinue Falmouth Ex-Wharf Bunker Assessments Platts to Discontinue Current Palm Oil/Gasoil Spread Assessment Gasoline Assessments Platts Stops Publishing US Gulf Coast Premium CBOB Platts Discontinues Russia Light Ends Export Duty Platts Stops Publishing ARPEL Consumer Price Postings Argus Discontinues US and European Asphalt Assessments Argus Discontinues Marine Fuels Assessments Argus Discontinues European Fuel Oil Bunker Assessments Argus Stops Publishing Russian Fuel Oil Bunker Assessments Argus Discontinues Select Afghanistan Petroleum Assessments NYMEX Delists Gasoil Related Futures and Options Contracts Middle Distillates, and Gasoline Platts to Amend FOB Singapore Assessments for Fuel Oil, Assessment Platts Changes Name of its Canadian Syncrude Sweet Argus Makes Changes to US Petroleum Product Codes Bunker Assessments Argus Modifies Publishing Frequency of Fuel Oil and Gasoil Freight Argus Changes Code Description for US Gulf Petroleum Freight Argus Updates Code Descriptions for Latin American Petroleum CME Modifies Gasoil Futures and Options Product Names FOB Arab Gulf Gasoil Assessment Platts to Launch Petroleum IESO Merges with OPA IESO Merges with Power Editorial Contents Summary 3 37 38 39 39 39 39 40 41 41 41 41 41 42 42 43 43 44 44 45 46 47 47 48 49 49 31 32 33 33 34 34 35 36 37 38 43 31 January 2015 CBOE Begins Distributing Volatility Index Values on FX Options Contracts CBOE Begins Distributing Volatility Index Values on FX Finance CME Lists Cocoa Futures Contract COMEX Lists Gold Kilo Futures Softs and Metals 38 SOFTS New Euro Cocoa Contract ICE Futures Europe to Introduce Spread Options MGEX Launches Wheat Calendar European DOP Assessments Platts Discontinues Northwest Raw Sugar Futures TOCOM and Nikkei Discontinue 40 METALS Platts to Discontinue East Asian Wire Rod Price Assessments Tin Price Platts Discontinues Publication of Daily Kuala Lumpur Platts Discontinues Quarterly Ore Lump Contract Price Platts Discontinues Weekly CIF Japan Indium Assessments Platts Stops Publishing Weekly FOB China Antimony Price Platts Discontinues Weekly FOB China Tungsten Prices Argus Renames Flotta Gold Codes ICE Futures US Launches Five New Forex Contracts CDS Instruments ICE Launches Clearing for Additional European Sovereign Key Interest Rate Benchmarks Thomson Reuters Appointed to Administer Canada’s Two Tool Bloomberg and SSGA Introduce Fixed Income ETF Basket ETFs Deutsche-Börse Launches New X-Trackers Bond Index Index Family NYSE Group and MYRA Capital Launch NYSE Dynamic Listed on Nasdaq First Trust Value Line Equity Allocation Index Fund Now EBS Market Launches End of Month Indian Rupee Forward Nasdaq Swedbank Robur Starts Clearing Interest Rate Swaps through Initiatives ICAP’s EBS Collaborates with SGX on Asian Foreign Exchange Argus Adds New European Coal Assessments Argus Adds New European Coal Coal Gas Natural Platts Launches LNG Atlantic FOB Marker Atlantic FOB LNG Platts Launches Zone 5 Listing Transco Platts Launches Zone 6 Listing Transco Platts Introduces Listings New Columbia Gas and Appalachia Platts Launches Swaps Series to Existing Propane Argus Adds Midpoints Natural Gas Contracts Suite of European CME Group Launches Assessments European Propane Swap Argus to Discontinue Four Natural Gas Futures Contracts NYMEX Delists Summary 4 50 51 52 53 54 55 56 57 57 59 61 62 63 64 65 66 67 67 68 68 69 70 72 74 76 50 52 61 67
January 2015 Emissions and Weather Platts Begins Publishing Cross-State Air Pollution Rule Allowance Assessments for 2015, 2016 for 2015, Assessments Rule Allowance Air Pollution Cross-State Publishing Platts Begins MinuteCast Wear App with New Android Releases AccuWeather Vendors News from Data to Its New January Data Sources Electricity Reports ZEMA Adds Numerous TX Lunch and Learn in Houston, Data Co-Host Integration ZE and Interactive Completed of PEGAS Markets Successfully Harmonization Metals Coverage MetalPrices.com, Expands Argus Acquires Market Freight Assessments in Volatile Argus Coking Coal and Colombia Adopts the South Korea ETS Database Carbon Market Data launches SPOT Elia, RTE and Tennet Jointly take 36.7% Share in EPEX Transmission System Operators an Expansion of South American Coffee Speedwell Weather Announces Product Monitoring in its Commodity Monthly Market Analysis Contract (NYMEX) Crude Oil Brent vs. WTI: Prompt-Month Curve (NYMEX) Crude Oil Brent vs. WTI: Forward Spot Prices (NYMEX) North American Natural Gas Curve (NYMEX) Henry Hub Natural Gas Forward Actual Weather (Accuweather) (ICE) Electricity: Day-Ahead Prices In Depth Growth and Decline The Seven Ages of Oil: Boom and Bust, War and Peace, Dateline January 2015: The Perilous Plummet Boom Goes the Machine-Drilled Well The Seven Ages 1859-1870: Illumination Births an Industry Standard 1870-1911: Rockefeller Creates the Multinational Oil 1911-1921 – A Pax on You 1921-1973 – Texas Oil Boom in the Gusher Age To be continued. Editorial 5 State of the State Address: Union Dominating the World Energy Markets and Losing to Congress January 2015 Energy Security Trust dedicated to shifting cars and trucks off petroleum, the development of Energy Security Trust dedicated to shifting cars and the recovery of shale deposits. In the 2013 speech, the President proposed the creation of an the recovery of shale deposits. In the 2013 speech, the circle with the honorable mentioning of hydraulic fracturing technology designed to enhance the circle with the honorable mentioning of hydraulic speech altered this direction – the new “all of the above” strategy invited fossil fuels back into speech altered this direction – the new “all of the 2035, while also promising to bring 1 million electric vehicles to the road by 2015. The 2012 2035, while also promising to bring 1 million electric the President’s pledge to have 80% of the nation’s electricity coming from clean resources by the President’s pledge to have 80% of the nation’s bill was promised to US citizens. In 2011, the address confirmed the chosen direction by voicing bill was promised to US citizens. In 2011, the address renewable energy in the next three years. A year later, a new comprehensive energy and climate renewable energy in the next three years. A year later, technologies and suggested that the United States would double the nation’s supply of technologies and suggested that the United States But let’s begin with some context. The 2009 speech cleared the way for clean energy But let’s begin with some context. The 2009 speech however, brought an even bigger surprise. it was altered, then the originally chosen direction was re-stated, and so on. The 2015 speech, it was altered, then the originally chosen direction sections of the President’s addresses related to energy: at first the direction was chosen, then sections of the President’s addresses related to energy: The last five years could be called anything but boring for those who paid close attention to the The last five years could be called anything but boring being the most valuable, mainly because it provides an indication of future government funding. being the most valuable, mainly because it provides programs, and initiatives throughout the year and afterward. The latter portion is perceived as programs, and initiatives throughout the year and address also puts forward strategic directions that crystalize into various legislations, policies, address also puts forward strategic directions that industries, including energy. But the state of the union per se is only part of the speech; the industries, including energy. But the state of the union US Congress, is the most highly anticipated public announcement of the year for many US Congress, is the most highly anticipated public The State of the Union Address, the speech delivered by the US President at a joint session of the The State of the Union Address, the speech delivered Editorial
6 Editor Olga Gorstenko 778-296-4183 Phone: Email: [email protected] Olga Gorstenko Olga The Excelerate Energy’s LNG terminal in Lavaca Bay, Texas, the first floating export facility in the United States, was put on hold in December 2014 due to uncertainty in its economic success. According to the EIA petroleum report, the US crude oil imports have been declining since 2013. ConocoPhillips, Shell, Hess, Occidental Petroleum, and Marathon Oil reduced their capital expenditures for 2015 due to deferrals of the US drilling and exploration plans, the decline in shale wells return, and dropping oil prices.c Advertising & Vendor Relationships Advertising Bruce Colquhoun 790-3299 Phone: (604) Email: [email protected] or would like to Have an idea for an article issue? Write to us contribute to an upcoming at [email protected] follow To get real-time data updates, @zedatawatch on Twitter of ZE DataWatch, To access previous issues go to datawatch.ze.com ZEMA Inquiries Bruce Colquhoun Phone: (604) 790-3299 Email: [email protected] than the rest of the world in preventing the President from achieving his goals and objectives, I am more interested in the nation’s world-domination stance itself. And I wonder how the following facts fit into it: • • •
Congress has proved to be more powerful While I find it very curious that the US by turning back the clock on our efforts.” Congress endanger the health of our children we use it. …[T]hat’s why I will not let this from the way we produce energy, to the way than ever before to combat climate change, “…over the past six years, we’ve done more climate change legislation promised in 2013: could not persuade Congress to develop the the world energy markets, but admittedly The US President seemed to have conquered power as we did in all of 2008.” Impressive. three weeks, we bring online as much solar America is number one in wind power. Every today, America is number one in oil and gas. areas, including the energy industry: “And position of the world leader in many different The US President elevated the nation to the energy policy framed with a lei of slogans. speech was – a vague reference to the US What a “wonderful” birthday present that What a “wonderful” birthday my birthday. on the TV while on my vacation in Hawaii, on on the TV while on my vacation for this speech that I was compelled to turn for this speech that I was breakthrough program. My hopes were so high breakthrough program. My and aspirations that the time had come for a and aspirations that the time 2015 address, I had built up more hopes 2015 address, I had built pledges and promises. So by the day of the pledges and promises. So implementation success of all those implementation success I choose to refrain from commenting on the I choose to refrain from commenting global leader in solar power generation. global leader in solar power and the United States was identified as a and the United States was “the bridge fuel that can power our economy” that can power our economy” “the bridge fuel gas and crude oil. The natural gas was called oil. The natural gas was gas and crude all domestic energy sources, including natural energy sources, including all domestic strategy that supported the development of supported the development strategy that discussion of an “all of the above” energy an “all of the above” energy discussion of what was said the year before: a déjà vu the year before: a déjà what was said change. The 2014 speech re-emphasized speech re-emphasized The 2014 change. to develop a market-based solution to climate to climate solution a market-based to develop promise of executive action if Congress failed failed action if Congress of executive promise new alternative energy hubs, and the and the hubs, energy alternative new January 2015 Power 7
© Graph created with ZEMA
January 2015 by reducing overlap, reducing costs, and streamlining electricity sector planning. costs, and streamlining electricity sector planning. by reducing overlap, reducing a conservation culture in the province. Amalgamation will achieve efficiencies going forward forward going the province. Amalgamation will achieve efficiencies a conservation culture in complimentary ZEMA demonstration. electricity system and market, long-term energy planning, procurement, and the promotion of promotion and the long-term energy planning, procurement, electricity system and market, book a perform in ZEMA. To learn more, comparing regional power data is very simple to point in the first week of October at around 300, 000 CAD/MWh. This kind of analysis for 000 CAD/MWh. This kind of analysis point in the first week of October at around 300, peaked in the third week of July 2014 at around 750,000 CAD/MWh and was at its lowest 750,000 CAD/MWh and was at peaked in the third week of July 2014 at around can see that the supply through 2014 steadily surpassed demand. The price, however, demand. The price, however, can see that the supply through 2014 steadily surpassed IESO between June 2014 – February 2015, before and after the merger. Upon inspection we and after the merger. Upon inspection IESO between June 2014 – February 2015, before The graph below shows the demand, supply, and price data for power in Ontario according to price data for power in Ontario The graph below shows the demand, supply, and This new organization is responsible for the real-time operation of the Ontario responsible for the real-time operation of the Ontario This new organization is See the original announcement. now operating as one organization. announced its merger with the Ontario Power Authority (OPA). The two bodies are are the Ontario Power Authority (OPA). The two bodies announced its merger with
On January 2, 2015, the Independent Electricity System Operator (IESO) Independent Electricity System Operator (IESO) On January 2, 2015, the IESO Merges with OPA Power
PEGAS Markets Operated by Powernext are Merged with EEX Effective January 1, 2015, The European Energy Exchange (EEX) and Powernext have successfully migrated all active EEX gas market members representing 100 percent of the NCG and GASPOOL Open Interest to Powernext. As of now, all natural gas activities of the EEX Group are operated by Powernext under the brand PEGAS. In total, 154 participants are now admitted to trading natural gas products on PEGAS. The formal transfer of the majority shares in Powernext to EEX has been completed. The change in Powernext’s shareholding structure has been formally validated by its General Assembly. Therefore, EEX is now majority shareholder of Powernext holding 55.8 percent of the shares. See the original announcement.
January 2015 8 Petroleum 9
January 2015 melt flow index of between 0.5-4.5. Ziegler Natta catalyst with a density of 912-940 kg/m3 for bothcast and blown film, and a kg/m3 for bothcast and blown film, Ziegler Natta catalyst with a density of 912-940 Specifications for metallocene C6 are: 1-Hexene comonomer based on the metallocene comonomer based on the metallocene Specifications for metallocene C6 are: 1-Hexene See the original announcement. index of around 0.85. catalyst, with density between 917-922 kg/m3 for both cast and blown film, and a melt flow both cast and blown film, and catalyst, with density between 917-922 kg/m3 for Specifications for standard LLDPE C6 are: 1-Hexene comonomer based on the Ziegler Natta comonomer based on the Ziegler Specifications for standard LLDPE C6 are: 1-Hexene of minimum 100-300 mt lots for domestic business. of minimum 100-300 mt lots for domestic business. standard linear low density polyethylene C6 spot prices, which are spot cargo size prices, which are spot cargo size standard linear low density polyethylene C6 spot Platts Global Alert pages 2404 and 2420, and in the Platts price database. metallocene and On March 6, 2015, Platts intends to assess FD NWE , on The new assessments will be published in Platts Asia Pacific Arab Gulf Marketscan http://www.ze.com/the-zema-solutions/data-coverage/. Platts to Launch Metallocene Spot Assessments assessment around loading dates. price buyers are willing to pay over and above the benchmark FOB Arab Gulf Gasoil benchmark FOB Arab Gulf Gasoil price buyers are willing to pay over and above the records on petroleum and other liquids, ZEMA, ZE’s data management solution, collects over 300 Platts ZEMA’s vast data library, visit several of them from the Middle East region. To learn more about In addition, Platts will publish a cash differential for the 10 ppm gasoil grade representing the representing a cash differential for the 10 ppm gasoil grade In addition, Platts will publish See the original announcement. which represent 500 ppm sulfur gasoil. which represent 500 ppm which is a freight netback from Platts’ outright FOB Singapore Gasoil assessment, both of both from Platts’ outright FOB Singapore Gasoil assessment, which is a freight netback adding an assessed sulfur differential to Platts’ outright FOB Arab Gulf Gasoil assessment, assessment, differential to Platts’ outright FOB Arab Gulf Gasoil adding an assessed sulfur In line with Platts’ existing FOB AG gasoil assessments, this new assessment will be based on FOB AG gasoil assessments, this new assessment In line with Platts’ existing for 10 ppm gasoil. Platts to Launch FOB Assessment Arab Gulf Gasoil will introduce a new FOB Arab Gulf assessment Effective April 1, 2015, Platts Petroleum 10
Platts Forward Platts © Graph created with ZEMA Content EFS at 16:30 Singapore Platts ICE Gasoil ESS at 16:30 Singapore Platts ICE Gasoil at 16:30 SG Futures & Time Spreads Platts ICE Gasoil Time Spreads at 16:30 SG Platts ICE Gasoil Frontline & Platts Gasoil at 16:30 Singapore New page New page New page New page Updated page Status
PPA 2664 PPA 2668 PPA 2670 PPA 2672 PPA 2634 Page January 2015 ZEMA demonstration. by selecting the preferred contract month and year. To learn more, book a complimentary To learn more, book a complimentary by selecting the preferred contract month and year. graphs can be created for a longer date range and data series can be easily separated data series can be easily separated graphs can be created for a longer date range and follows a downward trend with a slight increase on December 23. With ZEMA, similar December 23. With ZEMA, similar follows a downward trend with a slight increase on expiring in fourth quarter of 2015 (ICE data). As shown, the December 2014 settlement the December 2014 settlement expiring in fourth quarter of 2015 (ICE data). As shown, The ZEMA graph below shows the settlement for December 2014 gasoil future contracts December 2014 gasoil future contracts The ZEMA graph below shows the settlement for gasoil futures (EFS) and the ICE gasoil frontline swap (ESS). gasoil futures (EFS) and petroleum also collects data in charts, graphs, forward curves, and more. ZEMA ZEMA excels at displaying time-series http://www.ze.com/the-zema-suite/. data from a wide range of sources. For further information, visit The assessed derivatives are differentials between FOB Singapore 500 ppm paper and ICE and paper are differentials between FOB Singapore 500 ppm The assessed derivatives See the original announcement. from the previously announced launch date of January 2. from the previously announced “Gasoil Frontlines” spanning 12 calendar months and three quarters. This is a slight delay delay is a slight 12 calendar months and three quarters. This “Gasoil Frontlines” spanning The new assessments were launched under the names “Gasoil EFS,” “Gasoil ESS,” and and ESS,” launched under the names “Gasoil EFS,” “Gasoil The new assessments were
On February 2, 2015, Platts extended its forward gasoil derivatives coverage derivatives gasoil its forward Platts extended 2, 2015, On February Platts Derivatives Adds Gasoil Content Platts to Forward Curve Asia in Asia: in Asia. As a result, Platts added and updated the following pages to pages the following and updated Platts added As a result, in Asia. of trade at the close and ICE Gasoil futures for EFS, ESS, Curve Asia to host its assessments Petroleum 11
Content MOC Platts FO 180 CST SG vs FOB Rdam 3.5% FO at London New page Status
PPE 1690 Page January 2015 See the original announcement. information service for the European derivatives markets. information service for the European derivatives , its real-time expand the content and coverage offered on Platts Forward Curve Europe assessments for fuel oil derivatives. Platts is launching this page as part of its preparations to this page as part of its preparations assessments for fuel oil derivatives. Platts is launching Curve Europe host new East-West spread On February 2, 2015, Platts added a new page to Platts to Platts Oil Derivatives Forward Page Adds Fuel ZEMA collects many petroleum market records from Platts. ZEMA collects market data as soon as it is released, ensuring ensuring collects market data as soon as it is released, ZEMA collects many petroleum market records from Platts. ZEMA collection data To learn more about ZEMA’s advanced that ZEMA users have up-to-date US and European market data. functionalities, visit http://www.ze.com/the-zema-solutions/data/. . in the Europe and Americas Petrochemicalscan See the original announcement. found on Platts Petrochemical Alert on page PCA 332 and This assessment can be assessment for orthoxylene (PHABK00) on Fridays. assessment for orthoxylene On February 2, 2015, Platts began publishing FOB ARA orthoxylene assessments began publishing FOB ARA orthoxylene assessments On February 2, 2015, Platts weekly intra-week liquidity. Platts previously published on a daily basis to capture See the original announcement. Platts Introduces Daily EuropeanOrthoxylene Assessments Effective February 2, 2015, Platts launched assessments for the value of for the value assessments launched 2, 2015, Platts February Effective the oil spreads represent fuel These East-West spreads. fuel oil swap East-West in the Platts Market on Close assessment process. in the Platts Market on Close PlattsAssesses Spreads Oil Fuel European East-West oil Spread Fuel bids, offers, and interest to trade the East-West publication. Platts will publish Platts will publish assessments for three full calendar months ahead of the date of date for three full calendar months ahead of the Platts will publish assessments between Europe and Asia. between Europe coverage of the fuel oil market and better represent the key high sulfur fuel oil arbitrage route sulfur fuel oil arbitrage represent the key high the fuel oil market and better coverage of Platts added these assessments to its existing fuel oil derivative suite in order to enhance its suite in order to existing fuel oil derivative these assessments to its Platts added 3.5% Fuel Oil Barge swaps, at 16:30 London time. Barge swaps, at 16:30 3.5% Fuel Oil difference between the comparable month’s 180 CST Singapore Fuel Oil and FOB Rotterdam Fuel Oil and FOB month’s 180 CST Singapore the comparable difference between Petroleum 12
January 2015 See the original announcement. what is and is not acceptable in its makeup. This product is intended for use in ships and should follow normal market conventions around follow normal market conventions This product is intended for use in ships and should assessment. The minimum stem size will be 200 mt and the maximum 1,000 mt. assessment. The minimum stem size will be 200 Platts Introduces Oil Market Fuel Cut-off Time New for cut-off time for providing Effective January 5, 2015, Platts confirmed the new Coast physical residual fuel oil bids and offers for publication in the US Atlantic The new assessments will reflect fuel loading three to seven days forward from the date of date from the reflect fuel loading three to seven days forward The new assessments will at 3:15 p.m. Eastern Time (NYCRM01) and ULS Heating Oil barge FOB NYH (AAXPX00). (NYCRM01) and ULS Heating Oil barge FOB NYH at 3:15 p.m. Eastern Time ZEMA bunker assessments. To book a complimentary ZEMA collects several Platts data reports specifically on petroleum demonstration, visit http://www.ze.com/book-a-demo/. assessments for Straight Run LS Dlvd USAC vs. WTI Mo01 (AALFU00), front month NYMEX WTI NYMEX month Run LS Dlvd USAC vs. WTI Mo01 (AALFU00), front assessments for Straight See the original announcement. For the 0.1% bunker fuel assessment in New York Harbor, Platts will use the existing existing assessment in New York Harbor, Platts will use the For the 0.1% bunker fuel Eastern Time (NYCRM01) and ULS Heating Oil USGC Prompt Pipeline (AAXFD00). Eastern Time (NYCRM01) 120,000 barrels. USAC market to 50,000 barrels from the previous Straight Run LS Dlvd USGC vs. WTI Mo01 (AALFS00), front month NYMEX WTI at 3:15 p.m. p.m. WTI at 3:15 vs. WTI Mo01 (AALFS00), front month NYMEX Straight Run LS Dlvd USGC in the volume size assessed by Platts The change follows a reduction in April 2014 in the For the 0.1% bunker fuel assessment in Houston, Platts will use the existing assessments for assessments assessment in Houston, Platts will use the existing For the 0.1% bunker fuel previous cut-off time of 1:30 p.m. Central time. the sulfur content for marine fuel used by ships within 200 miles of shore in the fuel used by ships within 200 miles of shore the sulfur content for marine of 1%. Control Area to 0.1%, down from a current maximum North American Emissions than the Central time, 15 minutes later Market On Close assessment process as 1:45 p.m. International Maritime Organization rules, coming into effect on January 1, 2015, which limit which 2015, rules, coming into effect on January 1, International Maritime Organization A new market for 0.1% sulfur bunkers is expected to emerge as the industry adapts to to adapts bunkers is expected to emerge as the industry A new market for 0.1% sulfur in dollars per metric ton. in dollars per will be published of 0.1%. The assessments a maximum sulfur content RMG 380, with Therefore Platts assessments at both ports reflect bunker fuel that meets or is better than that meets or is better ports reflect bunker fuel assessments at both Therefore Platts is likely to conform more closely to standard RMG 380 specifications, with the low sulfur cap. with the low RMG 380 specifications, more closely to standard is likely to conform Feedback has strongly suggested that fuel supplied with new sulfur standards in mind sulfur standards in fuel supplied with new strongly suggested that Feedback has Effective January 5, 2015, Platts launched new assessments for maximum for maximum new assessments launched 2015, Platts January 5, Effective York. and New fuel in Houston bunker 0.1% sulfur Platts Assessments Launches Fuel Sulfur US Bunker Petroleum 13
January 2015 See the original announcement. Asphalt Report module. Many of the codes from both of these publications have been carried over from the Argus have been carried over from the Many of the codes from both of these publications Rocky Mountains, the US Midwest, the US Midcontinent, Canada, and Latin America. Rocky Mountains, the US Midwest, the US Midcontinent, The regions covered in these publications are the US Gulf Coast, the US West Coast, the US Gulf Coast, the US West Coast, The regions covered in these publications are the The codes are to be published weekly and include mainly asphalt, freight, crude, and fuel oil. mainly asphalt, freight, crude, The codes are to be published weekly and include ftp.argusmedia.com server and also be available via the Argus API. ftp.argusmedia.com server and also be available Bitumen Publications Americas Asphalt publication and On January 23, 2015, Argus launched the Argus Argus Introduces Argus Americas Asphalt and Argus of events in conventional crude in the USGC market will continue to be published on 290. crude in the USGC market will continue to be published of events in conventional about more of which are from North America. To learn ZEMA collects over 100 Platts reports on crude, more than 40 ZEMA, book a free demonstration today at http://www.ze.com/book-a-demo/. provide daily analysis of Bakken, Eagle Ford, and other shale markets on this page. Coverage Coverage this page. Bakken, Eagle Ford, and other shale markets on provide daily analysis of See the original announcement. file in the /DBitumen folder of This data now appears in the dbitumen.csv data The new page, PGA 295, will appear in the daily newsletters from the same day. Platts will day. Platts will appear in the daily newsletters from the same The new page, PGA 295, data file. Argus Bitumen publication and As well, also on January 23, Argus introduced the Scan to host its coverage of daily market activity in US shale crudes. Scan to host its coverage ftp.argusmedia.com and also via the Argus API. and commentary section to Crude Oil Marketwire, and North American Crude and Products Products and to Crude Oil Marketwire, and North American Crude and commentary section folder of data file in the /DAmAsphalt data file. This data can be found in the damasph.csv Platts Introduces Shale Crude US New Commentary Platts added a new page to Platts Global Alert On December 28, 2014, Petroleum 14 Frequency Daily Daily Daily Daily Daily Daily Rule Chapter 679
FLP Code Category >Products-> Fuel oil>Russia- Caspian >Products-> Fuel oil>Russia- Caspian >Products-> Fuel oil>Russia- Caspian >Products-> Fuel oil>Russia- Caspian >Products-> Fuel oil>Russia- Caspian >Products-> Fuel oil>Russia- Caspian Unit RUB/t RUB/t RUB/t USD/t USD/t USD/t Description Fuel oil bunker HS Fuel oil bunker 380cst dob Arkhangelsk RUB/t Fuel oil bunker HS 180cst dob Arkhangelsk RUB/t Gasoil bunker MGO 0.1% dob Arkhangelsk RUB/t Fuel oil bunker HS 380cst dob Arkhangelsk $/t Fuel oil bunker HS 180cst dob Arkhangelsk $/t Gasoil bunker MGO 0.1% dob Arkhangelsk $/t Continuous forward 0 0 0 0 0 0 Price type 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 Time stamp 26 26 26 26 26 26
Freight Route Liquid Petroleum Gas (Baltic) Futures Contract Contract PA-code PA0015488 PA0015489 PA0015490 PA0015491 PA0015492 PA0015493 the following dry bulk freight futures contract. CME Globex, the NYMEX trading floor, and for submission for clearing through CME ClearPort. for clearing through CME CME Globex, the NYMEX trading floor, and for submission January 2015 The Freight Route Liquid Petroleum Gas (Baltic) Futures contract has been listed for trading on contract has been listed The Freight Route Liquid Petroleum Gas (Baltic) Futures
Effective January 25, 2015, the New York Mercantile Exchange (NYMEX) listed Effective January 25, 2015, the New York Mercantile Futures Contract NYMEX Lists Liquid Route Petroleum Freight Gas ZEMA collects data from Argus’s FMB Weekly Sulphur record. To gain a wider perspective of the fossil fuels market and to market and gain a wider perspective of the fossil fuels ZEMA collects data from Argus’s FMB Weekly Sulphur record. To learn how ZEMA can enhance your business processes, visit http://www.ze.com/the-zema-solutions/. See the original announcement.
Effective January 12, 2015, Argus introduced new assessments for high sulfur for new assessments introduced 2015, Argus January 12, Effective Argus Introduces Russian New Assessments Sulfur Bunker in DARM data module in /DARM folder of ftp.argusmedia.com: module in /DARM folder in DARM data bunker DOB Arkhangelsk in rubles per ton and dollars per ton. The following series will appear will appear following series per ton. The and dollars per ton in rubles DOB Arkhangelsk bunker Petroleum 15
Freight Route Liquid Petroleum Gas (Baltic) Liquid Petroleum Gas (Baltic) Freight Route Futures Contract FLP ton 1,000 metric ton US Dollars and cents per metric $0.001 $0.001 February 2015 CME Globex: 1 month ClearPort: every month for NYMEX Trading Floor and CME years current year plus next two calendar to November inclusive: the last For contract months January month. business day of the calendar the 24th calendar day of the For December contract months: month, or if this is not a business day, the first preceding business day. Monday – Friday 9:00 a.m. to 2:30 p.m. Eastern Time/ET (8:00 a.m. to 1:30 p.m. Central Time/CT) – Sunday – Friday 6:00 p.m. – 5:15 p.m. ET (5:00 p.m. at 4:15 p.m. CT) with a 45-minute break each day beginning 5:15 p.m. ET (4:15 p.m. CT)
Commodity Code Contract Unit Price Quotation Minimum Price Tick Minimum Price Tick for Final Settlement Price Final Listed Month Listing Period Termination of trading Trading Hours: Open Outcry Trading Hours: CME Globex and CME ClearPort Contract January 2015 gasoil markets toward low sulfur grades in recent years. The previous contract specification years. The previous contract specification gasoil markets toward low sulfur grades in recent The revised specification reflects a parallel move in underlying physical European in underlying physical European The revised specification reflects a parallel move from the February 2015 contract month onward to the December 2021 contract. to the December 2021 contract. from the February 2015 contract month onward Gasoil ContractGasoil (ICE) announced that On January 12, 2015, Intercontinental Exchange and runs retains the contract code “G” The re-specified ICE low sulfur gasoil futures contract with a low sulfur specification beyond January 2015 contract months. with a low sulfur specification beyond January 2015 ICE Futures Europe Completes Transition to LowICE Futures Sulfur Europe Completes Transition contract transition of the ICE gasoil futures ICE Futures Europe has successfully completed its See the original announcement. The contract specifications are as follows: are specifications The contract consistent with similar liquid petroleum gas futures contracts. gas liquid petroleum with similar consistent Block trades are permitted for this contract, with a minimum transaction size of two contracts, contracts, of two size transaction a minimum with contract, for this permitted are trades Block NaturalPetroleum Gas 16
January 2015 Effective May 15, 2015, Platts intends to discontinue its current assessment Effective May 15, 2015, Platts intends to discontinue futures traded on the Intercontinental Exchange, or ICE, against first-month crude palm or ICE, against first-month crude futures traded on the Intercontinental Exchange, See the original announcement. Platts to Discontinue Current Spread Assessment Oil/Gasoil Palm gasoil reflects the value of first -month The current POGO spread, under the code BMAAA00, spread that is more representative of current market activity. spread that is more representative of current market for the palm oil/gasoil spread (PO-GO), as Platts is also proposing to launch a new PO-GO is also proposing to launch a new for the palm oil/gasoil spread (PO-GO), as Platts mitigating the currency risk of the trade circuit. mitigating the currency risk and POACU00 respectively. The lot size of crude oil mini is 10 barrels. MCX crude oil futures are traded in Indian Rupee, Rupee, in Indian is 10 barrels. MCX crude oil futures are traded The lot size of crude oil mini AASUL00, PUACW00, AASUK00, price assessment database under the codes of PUAFC00, The contract specification of crude oil mini is similar to the existing crude oil contract on MCX. oil contract of crude oil mini is similar to the existing crude The contract specification Platts Ex-Wharf to Discontinue Falmouth Assessments Bunker Falmouth ex-wharf bunker Effective July 1, 2015, Platts will discontinue its , Platts Bunkerwire and the Platts These assessments were published on Platts Marine Alert June 2015 contracts. See the original announcement. market liquidity at Falmouth. bunker market where Platts has observed diminished and 2015, February 2015, March 2015, April 2015, May crude oil mini January 2015, within the Northwest European The discontinuation reflects changing market conditions Forward Markets Commission (FMC), has given the MCX approval to offer trading in trading (FMC), has given the MCX approval to offer Forward Markets Commission IFO 180 CST, MGO DMA 0.1%). http://www.ze.com/book-a-demo/. http://www.ze.com/book-a-demo/. in crude oil mini. The commodity markets regulator, commenced futures trading 180 CST and marine gasoil fuel assessments of high and low sulfur 380 and 1% sulfur IFO 380 CST, 1%sulfur (3.5% sulfur IFO 380 CST, 3.5% sulfur IFO 180 CST,
On January 6, 2015, Multi Commodity Exchange of India Ltd (MCX) On January 6, 2015, Multi MCX Begins Futures Trading in Crude Mini Futures Trading MCX Begins ceased trading with the January 2015 expiry. with the January 2015 ceased trading about how market. To learn more of which are about the fossil fuels 130 ICE records, nearly 30 ZEMA collects over now at book a complimentary ZEMA demonstration aggregate, and analyze data, ZEMA can collect, was transitioned to the “G” equivalently-specified contract, and that contract code has also that contract code contract, and to the “G” equivalently-specified was transitioned See the original announcement. Open interest in the ICE Low Sulfur Gasoil futures contract (ULS) beyond February 2015 February (ULS) beyond contract Gasoil futures ICE Low Sulfur in the Open interest the expiry of the January 2015 contract month. contract month. 2015 of the January the expiry was based on a maximum sulfur content of 0.1% (1,000ppm) and has ceased trading, with with trading, ceased has and (1,000ppm) of 0.1% content sulfur maximum on a based was Petroleum 17
January 2015 See the original announcement.
On January 2, 2015, Platts stopped publishing consumer price postings in On January 2, 2015, Platts stopped publishing consumer Platts ARPEL Consumer Publishing Price Stops Postings de Empresas del Sector Latin America as gathered by the Asociacion Regional See the original announcement. under the symbol AASOC00. The seasonal supplemental assessment for Premium CBOB appeared on PGA page 332 332 PGA page assessment for Premium CBOB appeared on The seasonal supplemental its Russian light ends export As of January 2, 2015, Platts stopped publishing pipeline Premium CBOB, and AAWET00 for waterborne Premium CBOB. pipeline Premium CBOB, Platts Discontinues Russia Light Ends Export Duty on their own. ARP. in the Platts price database under data codes beginning Platts Global Alert page 330, and in the Platts assessment database under code AARQV00 for AARQV00 code 330, and in the Platts assessment database under Platts Global Alert page See the original announcement. be published both products will continue to naphtha and gasoline export duties. The duties for . All of the postings were also a smaller selection published daily in Platts Latin American Wire observed substantially diminished market liquidity. These assessments were published on published market liquidity. These assessments were observed substantially diminished by Platts, of Russia’s individual This export duty represents an average, calculated day on Platts Global Alert page 474, with The ARPEL postings had been published in full each Colonial Pipeline no longer ships this grade with regularity and, as a result, Platts has has Platts ships this grade with regularity and, as a result, Colonial Pipeline no longer to discontinue the value. duty. This follows a proposal published on June 17 Petroleo (ARPEL). note published September 19, 2013. note published September CBOB (D-Grade) gasoline. Platts initially proposed suspending this assessment in a Platts initially proposed suspending this assessment CBOB (D-Grade) gasoline. Effective January 2, 2015, Platts discontinued assessments for US Gulf Coast Premium Premium Platts discontinued assessments for US Gulf Coast Effective January 2, 2015, CBOB Gasoline Assessments Gasoline CBOB . publication Biofuelscan and in the PBF Platts Gulf Coast US Premium Publishing Stops The current POGO assessment is published in the Platts database under the code BMAAA00 under the code in the Platts database assessment is published The current POGO See the original announcement. month contract for BMD palm oil futures against front-month ICE gasoil futures. futures. ICE gasoil front-month oil futures against BMD palm contract for month Platts is proposing to assess a new POGO spread that reflects the value of the first forward of the first the value that reflects new POGO spread to assess a is proposing Platts oil futures listed on Bursa Malaysia, or BMD, traded at 4:30 p.m. Singapore time (0830 GMT). GMT). (0830 time Singapore p.m. at 4:30 traded or BMD, Malaysia, on Bursa listed oil futures Petroleum 18 Frequency Daily Daily Daily Daily Weekly Weekly Weekly Weekly Frequency
>Products-> Fuel oil-> Russia-Caspian >Products-> Fuel oil-> Russia-Caspian >Products-> Fuel oil-> Latin America >Products-> Fuel oil-> Latin America Category ->Products-> VGO->Northwest Europe ->Asphalt-> Americas-> US Gulf coast ->Asphalt-> Americas-> US Midwest ->Asphalt-> Americas-> US Gulf coast Category USD/t USD/t USD/t USD/t Unit USD/t USD/st USD/st USD/st Unit Fuel oil bunker LS 380cst dob St. Pete $/t Fuel oil bunker LS 380cst dob Murmansk $/t Fuel oil bunker LS 380 cst Quintero Valparaiso Fuel oil bunker LS 380 cst San Antonio Description VGO 0.5% NWE barge week range Asphalt (bitumen) fob western US Gulf Asphalt (bitumen) rack North Dakota Asphalt (bitumen) fob USGC east Description 0 0 0 0 Continuous forward 0 0 0 0 Continuous forward 1, 2 1, 2 1, 2 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 Price type 1, 2 Price type 26 26 2 2 Time stamp 6 0 0 0 Time stamp
PA0015089 PA0000725 PA0000648 PA0004738 PA0008294 PA0011516 PA0011519 PA-code PA0000614 PA-code January 2015 fuels assessments found in the damrinef files in the /DAMARINEF folder of fuels assessments found in the damrinef files in
Effective January 12, 2015, Argus stopped publishing the following marine Effective January 12, 2015, Argus stopped publishing Argus Assessments Discontinues Marine Fuels See the original announcement. ftp.argusmedia.com:
On January 16, 2015, Argus made changes to data in the dia.csv files in the the dia.csv files to data in changes Argus made 16, 2015, On January Argus Discontinues European and US Asphalt Assessments have been stopped: have been Asphalt Report in Argus following assessments The folder of ftp.argusmedia.com. \DASPH Petroleum 19 Frequency Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily ->Products-> Fuel oil-> US Gulf coast >Products-> Fuel oil-> US west coast >Products-> Fuel oil->Canada >Products-> Fuel oil-> US Gulf coast >Products-> Fuel oil-> US east coast >Products-> Fuel oil-> Latin America >Products-> Fuel oil-> US east coast >Products-> Fuel oil-> US west coast >Products-> Fuel oil-> US west coast >Products-> Fuel oil-> US west coast >Products-> Fuel oil->Canada Category USD/t USD/t USD/t USD/t USD/t USD/t USD/t USD/t USD/t USD/t USD/t Unit Fuel oil bunker LS Fuel oil 380 cst Houston LS Fuel oil bunker 380 cst Los Angeles LS Fuel oil bunker 380 cst Montreal Fuel oil bunker LS 380 cst New Orleans Fuel oil bunker LS 380 cst New York Fuel oil bunker LS 380 cst Panama Canal Fuel oil bunker LS 380 cst Philadelphia Fuel oil bunker LS 380 cst Portland Fuel oil bunker LS 380 cst San Francisco Fuel oil bunker LS 380 cst Seattle Fuel oil bunker LS 380 cst Vancouver Description 0 0 0 0 0 0 0 0 0 0 0 Continuous Continuous forward 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 1, 2, 8 Price Price type 2 2 2 2 2 2 2 2 2 2 2 Time Time stamp PA0011567 PA0011568 PA0011569 PA0011570 PA0011571 PA0011573 PA0011574 PA0011575 PA0011576 PA0011578 PA0011579 PA-code January 2015 See the original announcement. Petroleum 20 Frequency Daily Daily Daily Daily Daily Daily Daily Daily Daily Frequency
Category >Products> Fuel oil> RussiaCaspian >Products> Fuel oil> RussiaCaspian >Products> Fuel oil> RussiaCaspian >Products> Fuel oil> RussiaCaspian >Products>Fuel oil>Russia Caspian >Products>Fuel oil>Russia Caspian >Products>Fuel oil>Russia Caspian >Products> Fuel oil> Northwest Europe >Products> Fuel oil> Northwest Europe Category Unit RUB/t RUB/t USD/t USD/t RUB/t RUB/t USD/t Description Fuel oil bunker LS 380cst dob St. Pete RUB/t Fuel oil bunker LS 180cst dob St. Pete RUB/t Fuel oil bunker LS 380cst dob St. Pete $/t Fuel oil bunker LS 180cst dob St. Pete $/t Fuel oil bunker LS 380cst dob Murman- sk RUB/t Fuel oil bunker LS 180cst dob Murman- sk RUB/t Fuel oil bunker LS 380cst dob Murman- sk $/t Fuel oil bunker low sulphur 180 cst Rotterdam Fuel oil bunker low Fuel oil bunker sulphur 180 cst Antwerp Description Continuous forward 0 0 0 0 0 0 0 0 0 Continuous Forward 1, 2 1, 2 Price Type Price type 1, 2, 8 1, 2, 8 1,2 1, 2 1, 2, 8 1, 2, 8 1, 2 6 6 Time Stamp Time stamp 26 26 26 26 26 26 26
PA0004109 PA0004108 PA-code PA0004731 PA0004732 PA0004738 PA0004739 PA0008291 PA0008292 PA0008294 PA Code January 2015 series has been stopped in DARM data module in /DARM folder of ftp.argusmedia.com: series has been stopped Effective December 30, 2014, Argus discontinued codes for low sulfur fuel oil 2014, Argus discontinued codes for low sulfur fuel Effective December 30, following also all Ust-Luga (anchorage) assessments. The bunker assessments and See the original announcement. Assessments Bunker Oil Russian Publishing Argus Fuel Stops
Effective January 2, 2015, Argus stopped publishing the series below. These series below. the stopped publishing 2015, Argus January 2, Effective of ftp.argusmedia.com. DEURO folder files in the are in the DLP series Argus Discontinues European Fuel Oil Bunker AssessmentsArgus Bunker Oil Discontinues European Fuel Petroleum Time Price Continuous PA-code Description Unit Category Frequency stamp type forward Fuel oil bunker LS >Products>Fuel PA0008295 26 1, 2 0 180cst dob Murman- USD/t oil>Russia Daily sk $/t Caspian Fuel oil bunker HS >Products>Fuel PA0013982 26 1, 2, 8 0 380cst dob Ust-Luga USD/t oil>Russia Daily (anchorage) Caspian Fuel oil bunker HS >Products>Fuel PA0013983 26 1, 2, 8 0 180cst dob Ust-Luga USD/t oil>Russia Daily (anchorage) Caspian Fuel oil bunker LS >Products>Fuel PA0013984 26 1, 2, 8 0 380cst dob Ust-Luga USD/t oil>Russia Daily (anchorage) Caspian Fuel oil bunker LS >Products>Fuel PA0013985 26 1, 2, 8 0 180cst dob Ust-Luga USD/t oil>Russia Daily (anchorage) Caspian Fuel oil bunker LS >Products>Fuel PA0013990 26 1, 2, 8 0 380cst dob USD/t oil>Russia Daily Novorossiysk Caspian Fuel oil bunker LS >Products>Fuel PA0013991 26 1, 2, 8 0 180cst dob USD/t oil>Russia Daily Novorossiysk Caspian Gasoil bunker MGO >Products>Fuel PA0013992 26 1, 2, 8 0 dob Ust-Luga USD/t oil>Russia Daily (anchorage) Caspian Fuel oil bunker LS >Products>Fuel PA0013988 26 1, 2, 8 0 380cst dob Ust-Luga USD/t oil>Russia Daily (berth) Caspian Fuel oil bunker LS >Products>Fuel PA0013989 26 1, 2, 8 0 180cst dob Ust-Luga USD/t oil>Russia Daily (berth) Caspian
See the original announcement.
January 2015 21 Petroleum Argus Discontinues Select Afghanistan Petroleum Assessments Effective December 8, 2014, Argus stopped publishing daf Afghanistan assessments due to a lack of liquidity. The following assessments were removed from Argus Caspian Market:
Time Price Continuous PA-code Description Category Frequency stamp type forward
Gasoline A80 daf ->Products-> PA0011664 0 1, 2 0 Ghalaba/Khairatan Gasoline-> Weekly Afghanistan no tax Central Asia Gasoil diesel summer ->Products-> 0.2pc daf Ghalaba/ Gasoil/Diesel/ PA0011665 0 1, 2 0 Weekly Khairatan Afghanistan Heating oil-> no tax Central Asia
The code will be stopped in the DARK file of the /DARK folder and DARKEN file of the /DARKEN folder on ftp.argusmedia.com. See the original announcement.
NYMEX Delists Gasoil Related Futures and Options Contracts As of January 5, 2015, the NYMEX has delisted a series of Gasoil and Low Sulfur Gasoil related futures and options contracts as shown in the table below:
Contract title Commodity Codes Rulebook Chapter
CPC/NX Pit HA NY Harbor ULSD vs. Gasoil Futures 725 Globex: HAB
Low Sulphur Gasoil Average Price Options LSO 252
Low Sulphur Gasoil (100mt) Calendar Month Futures LSM 309
Low Sulphur Gasoil (100mt) Penultimate Day Futures LSP 362
Singapore Gasoil (Platts) vs. Low Sulphur Gasoil Futures LSS 295
ULSD 10ppm Cargoes CIF Med (Platts) vs. LSL 372 Low Sulphur Gasoil Futures
Low Sulphur Gasoil Crack Spread Financial Future LSC 363
January 2015 22 Petroleum Contract title Commodity Codes Rulebook Chapter
ULSD 10ppm Cargoes CIF NWE (Platts) vs. LSU 361 Low Sulphur Gasoil Futures European Diesel 10ppm Barges FOB Rdam (Platts) vs. LSE 858 Low Sulphur Gasoil Futures
See the original announcement.
Platts to Amend FOB Singapore Assessments for Fuel Oil, Middle Distillates, and Gasoline Effective July 1, 2015, Platts will amend the loadpoints reflected in its FOB Singapore assessments for fuel oil, middle distillates, and gasoline. From July onward, Platts FOB Singapore assessments will reflect “FOB Straits” bids, offers and transactions. Platts has no plans to amend the nomenclature of its published FOB Singapore assessments and plans to continue to reference these assessments in all publications under the name of “FOB Singapore.” For FOB Straits transactions, sellers should nominate an approved loadpoint ten days prior to loading for all products. Such approved loadpoints may include approved terminals in Singapore or southern Malaysia. Under this revised approach, Platts will no longer publish FOB Singapore or FOB Malaysia bids, offers, or transactions in its Market on Close assessment process. Platts will only publish bids and offers and transactions as FOB Straits. This proposed change in methodology reflects the fact that the Singapore refined oil products markets have grown significantly in the last several years. The associated spot markets now regularly include trades for commodities loading close to, but beyond the geographic borders of, Singapore. See the original announcement.
Platts Changes Name of its Canadian Syncrude Sweet Assessment On January 15, 2015, Platts changed the name of its Canadian Syncrude Sweet crude assessment to Syncrude Sweet Premium. The change, which was proposed on October 29, reflects changes on Enbridge’s grouping system for crudes shipped through its pipeline network. The methodology used to assess the value of this crude, including its specifications, did not change as a result of this name change.
January 2015 23 Petroleum This assessment appears on Platts Global Alert page 230, in the Crude Oil Marketwire, the North American Crude and Products Scan, and in the Platts price database under the code AASOK00. See the original announcement.
Argus Makes Changes to US Petroleum Product Codes Effective January 16, 2015, Argus made changes to the Argus US Products publication. These changes apply to data in the dhp and dhps .csv files in the DUSPR folder on ftp.argusmedia.com. The following code description will be updated:
PA-code Old Description New Description
Heating oil 500ppm Colonial Heating oil 500ppm NYH offline Colonial PA0015303 75 pipe fob cycle 75 pipe del cycle
And the category path will be changing for the following codes:
PA-code Old Category New Category
->Products->Gasoil/Diesel/ ->Products->Gasoil/Diesel/Heating oil-> PA0014710 Heating oil->US Colonial pipeline US east coast
PA0014711 ->Products->Jet->US Colonial pipeline ->Products->Jet->US east coast
->Products->Gasoil/Diesel/ ->Products->Gasoil/Diesel/Heating oil-> PA0014712 Heating oil->US Colonial pipeline US east coast ->Products->Gasoline-> ->Products->Gasoil/Diesel/Heating oil-> PA0015177 US Colonial pipeline US Colonial pipeline
See the original announcement.
January 2015 24 Petroleum Argus Modifies Publishing Frequency of Fuel Oil and Gasoil Bunker Assessments As of January 12, 2015, Argus changed the publishing frequency for the bunker assessments below from weekly to fortnightly. These changes are reflected in Argus Caspian Market. Price Continuous PA-code Description Unit Category New Frequency type forward Fuel oil bunker >Products>Fuel PA0008540 1 0 USD/t Fortnightly 30cst fob Baku oil>Russia-Caspian Fuel oil bunker >Products>Fuel PA0008540 2 0 USD/t Fortnightly 30cst fob Baku oil->Russia-Caspian Marine gasoil >Products>Gasoil/ PA0008541 1 0 bunker 0.2pc fob USD/t Diesel/Heating Fortnightly Baku oil>Central Asia Marine gasoil >Products>Gasoil/ PA0008541 2 0 bunker 0.2pc fob USD/t Diesel/Heating Fortnightly Baku oil>Central Asia Marine gasoil >Product>Gasoil/ PA0008542 1 0 bunker 0.2pc fob USD/t Diesel/Heating Fortnightly Aktau oil>Central Asia Marine gasoil >Products>Gasoil/ PA0008542 2 0 bunker 0.2pc fob USD/t Diesel/Heating Fortnightly Aktau oil>Central Asia
See the original announcement.
Argus Changes Code Description for US Gulf Petroleum Freight Effective January 9, 2015, Argus corrected the code description for the following assessment in Argus Petroleum Transportation North America. This series is found in the dptr data file in the \DPTR folder of ftp.argusmedia.com.
PA-code Old description Corrected description PA0002720 Freight dirty Covenas - US Gulf 135kt Freight dirty Covenas - US Gulf 70kt
See the original announcement.
January 2015 25 Petroleum Argus Updates Code Descriptions for Latin American Petroleum Freight Effective January 9, 2015, Argus updated code descriptions for the following assessment in Argus Latin Markets. These series are found in the dlm data file in the \DALM folder of ftp.argusmedia.com.
PA-code Old description New description PA0002070 Dirty Ecuador - Peru Dirty Ecuador - Peru 50kt PA0002071 Dirty Ecuador - Chile Dirty Ecuador - Chile 50kt PA0002079 Dirty Venezuela - USGC Dirty Venezuela - USGC Venezuela 70kt
See the original announcement.
CME Modifies Gasoil Futures and Options Product Names Effective January 4, 2015, the Chicago Mercantile Exchange (CME) modified the following gasoil futures and options product names:
FIX/FAST and iLink: tag FIX/FAST and iLink: tag Current Product Name New Product Name 1151-Security Group MDP 55-Symbol MDP 3.0 tag 3.0: tag 6937-Asset 1151 - Security Group
Low Sulphur Gasoil Gasoil Crack Spread Crack Spread (1000mt) Financial GOC RF (1000mt) Futures Financial Futures Mini ULSD 10ppm Mini ULSD 10ppm Car- Cargoes CIF MED goes CIF MED (Platts) vs. UCM CP (Platts) vs. Low Gasoil Futures Sulphur Gasoil Futures Mini European Jet Mini European Jet Kero Kero Cargoes CIF NWE Cargoes CIF NWE (Platts) MJC RF (Platts) vs. Low vs. Gasoil Futures Sulphur Gasoil Futures Mini European Jet Kero Mini European Jet Kero Barges FOB Rdam Barges FOB Rdam MJB RF (Platts) vs. Gasoil (Platts) vs. Low Futures Sulphur Gasoil Futures Mini ULSD 10ppm Mini ULSD 10ppm Cargoes CIF NWE Cargoes CIF NWE (Platts) MGN CP (Platts) vs. Low vs. Gasoil Futures Sulphur Gasoil Futures
January 2015 26 Petroleum
FIX/FAST and iLink: tag FIX/FAST and iLink: tag Current Product Name New Product Name 1151-Security Group MDP 55-Symbol MDP 3.0 tag 3.0: tag 6937-Asset 1151 - Security Group
Mini Gasoil 0.1 Mini Gasoil 0.1 Cargoes Cargoes CIF NWE CIF NWE (Platts) vs. MGF CP (Platts) vs. Low Gasoil Futures Sulphur Gasoil Futures Jet Aviation Fuel Jet Aviation Fuel Car- Cargoes FOB MED goes FOB MED (Platts) A1V RF (Platts) vs. Low vs. Gasoil Futures Sulphur Gasoil Futures Gasoil 0.1 Cargoes CIF Gasoil 0.1 Cargoes CIF MED (Platts) vs. Low MED (Platts) vs. Gasoil 8W CP Sulphur Gasoil BALMO BALMO Futures Futures ULSD 10ppm CIF MED ULSD 10ppm CIF MED (Platts) vs. Low (Platts) vs. Gasoil 7V CP Sulphur Gasoil BALMO BALMO Futures Futures Gasoil 0.1 Barges FOB Gasoil 0.1 Barges FOB Rdam (Platts) vs. Low Rdam (Platts) vs. Gasoil 6V CP Sulphur Gasoil BALMO BALMO Futures Futures Gasoil 0.1 Cargoes CIF Gasoil 0.1 Cargoes CIF NWE (Platts) vs. Gasoil NWE (Platts) vs. Low 4V CP BALMO Sulphur Gasoil BALMO Futures Futures ULSD 10ppm Cargoes ULSD 10ppm Cargoes CIF NWE (Platts) vs. CIF NWE (Platts) vs. 3V CP Low Sulphur Gasoil Gasoil BALMO Futures BALMO Futures Diesel 10ppm Barges Diesel 10ppm Barges FOB Rdam (Platts) vs. FOB Rdam (Platts) vs. 7X CP Low Sulphur Gasoil Gasoil BALMO Futures BALMO Futures Jet Fuel Cargoes CIF Jet Fuel Cargoes CIF NWE (Platts) vs. Low NWE (Platts) vs. Gasoil A6X CP Sulphur Gasoil BALMO BALMO Futures Futures
January 2015 27 Petroleum
FIX/FAST and iLink: tag FIX/FAST and iLink: tag Current Product Name New Product Name 1151-Security Group MDP 55-Symbol MDP 3.0 tag 3.0: tag 6937-Asset 1151 - Security Group
Jet Fuel Barges FOB Jet Fuel Barges FOB Rdam (Platts) vs. Low Rdam (Platts) vs. Gasoil 9Q CP Sulphur Gasoil BALMO BALMO Futures Futures
Low Sulphur Gasoil Gasoil BALMO Futures U9 CP BALMO Futures
Gasoil Mini Financial Low Sulphur Gasoil AQA RF Futures Mini Financial Futures
Gasoil 0.1 Barges FOB Gasoil 0.1 Barges FOB Rdam (Platts) vs. Gasoil Rdam (Platts) vs. Low AWQ RF Futures Sulphur Gasoil Futures
Gasoil 0.1 Cargoes CIF Gasoil 0.1 Cargoes CIF NWE (Platts) vs. Gasoil NWE (Platts) vs. Low ATU RF Futures Sulphur Gasoil Futures ULSD 10ppm Cargoes ULSD 10ppm Cargoes CIF NWE (Platts) vs. CIF NWE (Platts) vs. ATP RF Low Sulphur GasoRFil Gasoil Futures Futures Gasoil 0.1 Cargoes CIF Gasoil 0.1 Cargoes CIF MED (Platts) vs. Gasoil MED (Platts) vs. Low AZ5 RF Futures Sulphur Gasoil Futures
ULSD 10ppm CIF MED ULSD 10ppm CIF MED (Platts) vs. Gasoil (Platts) vs. Low AZ7 RF Futures Sulphur Gasoil Futures European Low European Gasoil Sulphur Gasoil Calendar Spread GXA PC Calendar Spread Options Option European Low European Gasoil Sulphur Gasoil Calendar Spread GXB PC Calendar Spread Options Option
January 2015 28 Petroleum
FIX/FAST and iLink: tag FIX/FAST and iLink: tag Current Product Name New Product Name 1151-Security Group MDP 55-Symbol MDP 3.0 tag 3.0: tag 6937-Asset 1151 - Security Group
European Low European Gasoil Sulphur Gasoil Calendar Spread GXC PC Calendar Spread Options Option European Low European Gasoil Sulphur Gasoil Calendar Spread GXM PC Calendar Spread Options Option European Low European Gasoil Sulphur Gasoil Calendar Spread GXZ PC Calendar Spread Options Option European Low Sulphur European Gasoil Gasoil (1000mt) BG RF (1000mt) Bullet Futures Bullet Futures
European Low Sulphur European Gasoil Brent Gasoil Brent Crack GZ PT Crack Spread Futures Spread Futures
European Gasoil Brent European Low Sulphur Crack Spread Average Gasoil Brent Average A3U EF Price Option Price Option
European Low Sulphur European Gasoil Gasoil (100mt) Bullet GLI CM (100mt) Bullet Futures Futures European Diesel European Diesel 10 ppm Barges FOB 10 ppm Barges FOB AET EE Rdam (Platts) vs. Gasoil Rdam (Platts) vs. Low Futures Sulphur Gasoil Futures Jet Cargoes CIF NWE Jet Cargoes CIF NWE (Platts) vs. Gasoil (Platts) vs. Low HJC RF Futures Sulphur Gasoil Futures
Jet Barges FOB Rdam Jet Barges FOB Rdam (Platts) vs. Gasoil (Platts) vs. Low AJR RF Futures Sulphur Gasoil Futures
January 2015 29 Petroleum
FIX/FAST and iLink: tag FIX/FAST and iLink: tag Current Product Name New Product Name 1151-Security Group MDP 55-Symbol MDP 3.0 tag 3.0: tag 6937-Asset 1151 - Security Group
Singapore Gasoil Singapore Gasoil (Platts) (Platts) vs. Low AGA RF vs. Gasoil Futures Sulphur Gasoil Futures
European Low Sulphur European Gasoil Finan- Gasoil Financial AGX RF cial Futures Futures Mini European Diesel Mini European Diesel 10 ppm Barges FOB 10 ppm Barges FOB MUD CP Rdam (Platts) vs. Gasoil Rdam (Platts) vs. Low Futures Sulphur Gasoil Futures Mini Gasoil 0.1 Barges Mini Gasoil 0.1 Barges FOB Rdam (Platts) vs. FOB Rdam (Platts) vs. MGB CP Low Sulphur Gasoil Gasoil Futures Futures
European-Style Gasoil European-Style Low F8 PC Options Sulphur Gasoil Option
Gasoil Average Price Low Sulphur Gasoil AF7 EF Options Average Price Option
FAME 0 Biodiesel FOB FAME 0 Biodiesel FOB Rdam (Argus) (RED Rdam (Argus) (RED FBT CP Compliant) vs. Gasoil Compliant) vs. Low Futures Sulphur Gasoil Futures RME Biodiesel FOB RME Biodiesel FOB Rdam (Argus) (RED Rdam (Argus) (RED BFR RF Compliant) vs. Gasoil Compliant) vs. Low Futures Sulphur Gasoil Futures
See the original announcement.
January 2015 30 Natural Gas 31
January 2015 ZEMA presently collects more than 700 reports on the natural gas market and is always adding more. To learn more gas market and is always adding more. To ZEMA presently collects more than 700 reports on the natural your business versatile forward curves can enhance about how ZEMA’s extensive data library, powerful analytics, and processes, book a demo by visiting http://www.ze.com/book-a-demo/. See the original announcement. and where appropriate. Atlantic delivery to Brazil and Argentina, may be considered in the assessment process when considered in the assessment process Atlantic delivery to Brazil and Argentina, may be LNG DES spot transactions, traded in other regions including Middle East and Asia, along with including Middle East and Asia, LNG DES spot transactions, traded in other regions Production regions are also included, such as Nigeria, Angola, Algeria, and Norway. Angola, Algeria, and Norway. Production regions are also included, such as Nigeria, The new assessment is called the East Atlantic Market (EAM) published under the The new assessment is called the East Atlantic Market basis. and FOB cargoes sold on a ship-to-ship transfer and Pacific basins. Europe, including the Mediterranean re-export locations in both Northwest and Southwest Europe, the region has become a balancing point for cargoes destined for both the Atlantic for cargoes destined for both the Europe, the region has become a balancing point and from the following primary half-month increments drawing on volumes originating On January 2, 2015, Platts launched an additional marker to reflect the On January 2, 2015, Platts in both Southwest and Northwest European re-export activity to optimize cargoes arriving in to the current and front month Huelva/Gibraltar loading with a laycan corresponding Platts has noted that, with growing demand from markets in South America and increased markets in South America and increased Platts has noted that, with growing demand from a cargoes, freight normalized to The EAM reflects a transactable value of spot LNG Platts Launches FOB LNG Atlantic Marker originating from the East Atlantic. FOB value of LNG cargoes code/symbol LEAMM01. Natural Gas 32 © Graph created with ZEMA
Transco, zone 5 delivered
January 2015 . Physical Basis Prices” table in Inside FERC’s Gas Market Report “Market Center Bidweek demo. book a complimentary ZEMA through advanced built-in formulas. To learn more, pages 433 and 495. Additionally, the new listing appears in the “Northeast” section of the of section the new listing appears in the “Northeast” pages 433 and 495. Additionally, ZEMA can be easily performed with $3 USD/MMBtu in January 2015. Similar analyses FERC’s Gas Market Report, and Platts Natural Gas Alert Gas Prices” table in Inside of around before eventually dipping to a low at a little over $5 USD/MMBtu in February 2014 The new monthly location can be found in the “Northeast” section of the “Market Center Spot Center “Market can be found in the “Northeast” section of the The new monthly location peaked – January 2015 (NYMEX data). Prices its annual average price between January 2013 LNG terminal are not included. LNG terminal are not included. to trend for Transco Zone 2 in comparison The ZEMA graph below shows the natural gas price Transco at the Pleasant Valley receipt point near Fairfax, Virginia, from Dominion’s Cove Point Cove receipt point near Fairfax, Virginia, from Dominion’s Transco at the Pleasant Valley See the original announcement. from the Georgia/South Carolina border to the Virginia/Maryland border. Deliveries into into Deliveries Carolina border to the Virginia/Maryland border. from the Georgia/South Deliveries from Transcontinental Gas Pipe Line on the 30-inch, 36-inch, and 42-inch lines and 42-inch Gas Pipe Line on the 30-inch, 36-inch, Deliveries from Transcontinental • specifications guide is as follows: specifications guide is as The description for the daily spot-gas point as published in the Platts methodology and Platts methodology point as published in the for the daily spot-gas The description for this location. for this location. that supports a robust pricing location. Platts previously published only daily spot-gas prices only daily spot-gas Platts previously published a robust pricing location. that supports Georgia/South Carolina border to the Virginia/Maryland border, has demonstrated a level has demonstrated Virginia/Maryland border, Carolina border to the Georgia/South Trading in the delivered monthly market in Transco’s zone 5, which extends from the which extends from in Transco’s zone 5, delivered monthly market Trading in the Transcontinental Gas Pipeline Corp., zone 5. Corp., zone Pipeline Gas Transcontinental listing for bidweek a monthly Platts launched 2, 2015, On January PlattsZone 5 Listing Launches Transco Natural Gas 33
Columbia Gas, Appalachia (Non-IPP) Transco, zone 6 non-NY North (daily and monthly survey) Transco, zone 6 non-NY
January 2015 pages 403, 482 and 511. Additionally, the new listings will appear in the “Columbia Gas listings will appear in the “Columbia pages 403, 482 and 511. Additionally, the new section of Gas Daily’s “Daily price survey” table, and Platts Natural Gas Alert section of Gas Daily’s “Daily price survey” table, , in the “Appalachia” FERC’s Gas Market Report, Energy Trader and Gas Daily Price Guide Transmission Corp.” section of the “Prices of Spot Gas Delivered to Pipelines” table in Inside Gas Delivered to Pipelines” table Transmission Corp.” section of the “Prices of Spot The Columbia Gas, Appalachia (Non-IPP) listings will appear in the “Columbia Gas will appear in the “Columbia Gas The Columbia Gas, Appalachia (Non-IPP) listings Inside FERC’s Gas Market Report. in Inside FERC’s Gas Market other interstate pipeline systems. gas delivered to Columbia from interconnects with appear in the “Northeast” section of the “Market Center Bidweek Physical Basis Prices” table Basis Prices” section of the “Market Center Bidweek Physical appear in the “Northeast” and monthly bidweek price Effective January 2, 2015, Platts launched daily for location does not include transactions from Columbia’s IPP pool (TCO pool). This pricing pages 433, 495 and 516. Additionally, the new listings will pages 433, 495 and 516. and Platts Natural Gas Alert Platts Launches Listings and Appalachia Columbia New Gas restricted production locations are Deliveries to Columbia Gas Transmission from on-system , in the “Citygates” section of , in the “Citygates” sectionGas Daily’s “Daily price survey” table, and Gas Daily Price Guide collects, visit To learn more about the records ZEMA ZEMA collects more than 100 natural gas records from Platts alone. http://www.ze.com/the-zema-solutions/data-coverage/. • Inside FERC’s Gas Market Report, Energy Trader, Prices” table in Inside FERC’s Gas Market “Market Center Spot Gas See the original announcement. The description for the new location is: The Transco, zone 6 non-NY North listings can be found in the “Northeast” section of the of the section North listings can be found in the “Northeast” The Transco, zone 6 non-NY and those that are not (Non-IPP). of the Columbia Gas Interruptible Paper Pool (IPP) • that are part have bifurcated between those Prices in the Columbia Gas Transmission system The description for the new location will be: The description for the new (Non-IPP) deliveries. survey sub-listings for Columbia Gas, Appalachia composed of all non-NY delivered transactions both north and south of Station 195. delivered transactions both north and south of Station composed of all non-NY There has been no change to the existing Platts listing for Transco, zone 6 non-NY, which is which non-NY, to the existing Platts listing for Transco, zone 6 There has been no change New Jersey. excluding deliveries in the Leidy Hub area and to New York citygates downstream of Linden, downstream area and to New York citygates in the Leidy Hub excluding deliveries from Transco to markets and interconnects north of Station 195 in York, Pennsylvania, in York, Pennsylvania, north of Station 195 to markets and interconnects from Transco portion of Transco’s zone 6 non-NY, which will be composed of only transactions delivered of only transactions will be composed zone 6 non-NY, which portion of Transco’s To bring more transparency to the pricing region, Platts is adding a listing for the northern a listing for the region, Platts is adding transparency to the pricing To bring more Effective January 2, 2015, Platts launched daily and monthly bidweek bidweek daily and monthly launched 2015, Platts January 2, Effective North. non-New York zone 6, for Transco sub-listings price survey Platts Zone Listing 6 Introduces Transco Natural Gas 34 Frequency Daily Daily Daily Daily
Category ->LPG->Northwest Europe->Propane ->LPG->Northwest Europe->Propane ->LPG->Mideast Gulf->Propane ->LPG->Asia- Pacific->Propane Unit USD/t USD/t USD/t USD/t Description Propane Swaps NWE month Propane Swaps NWE quarter Propane CP swap month Propane Far East Index swap month Continuous forward 1, 2, 3, 4, 5, 6 1, 2, 3 1, 2, 3 1, 2, 3 Price type 8 8 8 8 Time stamp 6 6 6 6
PA0002720 PA0002721 PA0002722 PA0002723 PA-code Transfer Facility (TTF). The financially settled futures will be based on the ICIS Heren Natural will be based on the ICIS Heren Transfer Facility (TTF). The financially settled futures major natural gas hubs in Europe: the UK National Balancing Point (NBP) and the Dutch Title Balancing Point (NBP) and the major natural gas hubs in Europe: the UK National natural gas futures on CME Europe. The physically delivered futures contracts are in the two delivered futures contracts are natural gas futures on CME Europe. The physically contracts. There will be four physically delivered and eight financially settled exchange-traded and eight financially settled exchange-traded contracts. There will be four physically delivered to be introduced on CME Europe since its launch in April with foreign exchange and biofuel in April with foreign exchange and to be introduced on CME Europe since its launch The new suite of physically and financially settled European natural gas contracts are the first European natural gas contracts The new suite of physically and financially settled CME Europe, and are authorized and approved by the United Financial Conduct Authority. the United Financial Conduct CME Europe, and are authorized and approved by cleared futures contracts. The contracts are now listed on CME Group’s European exchange, listed on CME Group’s European cleared futures contracts. The contracts are now launched the first suite of physically and financially settled European natural gas settled European natural gas launched the first suite of physically and financially January 2015 Effective January 19, 2015, the Chicago Mercantile Exchange (CME) Group Effective January 19, 2015, the Chicago Mercantile See the original announcement. CME Group Launches Contracts Suite of European Gas Natural
Effective January 5, 2015, Argus added the midpoints (price type 8) to the the midpoints (price 5, 2015, Argus added Effective January folder of ftp.argusmedia.com. dpg data file in the \DLPG ArgusAdds Midpoints to Existing Propane Series Swaps and the dpgeurope March 31, 2015. These series will be found in stop for these series after ZEMA collects natural gas records from all over the world and from dozens of different data sources. To receive data sources. To the world and from dozens of different gas records from all over ZEMA collects natural ZEMA demonstration, visit http://www.ze.com/book-a-demo/. a complimentary will types low price (1 & 2) until the end of March 2015. The high existing high/low price types Inside FERC’s Gas Market Report . FERC’s Gas Inside table in See the original announcement. with the will exist in parallel below. These midpoints the propane swaps series data feed for Transmission Corp.” section of the “Bidweek Physical Basis Prices Delivered to Pipelines” to Pipelines” Delivered Prices Basis Physical “Bidweek of the section Corp.” Transmission Gas Indexes for UK, Dutch, Austrian, and German natural gas hubs. The natural gas contracts Natural Gas will be available on Clearport and Globex and distributed via the Trayport platform alongside other exchange products. See the original announcement.
ZEMA collects more than a dozen natural gas reports from the Chicago Mercantile Exchange. For further information, visit http://www.ze.com/the-zema-suite/.
Argus to Discontinue European Propane Swap Assessments Effective March 31, 2015, Argus will stop the following price types (high and low). These will stop for these series but the midpoints introduced in January 2015 will continue beyond March 31. These series will be found in the dpgeurope and dpg data file in the \DLPG folder of ftp.argusmedia.com.
Time Price Continuous PA-code Description Unit Category Frequency stamp type forward
1, 2, 3, 4, Propane Swaps >LPG>Northwest PA0002720 6 1, 2 USD/t Daily 5, 6 NWE month Europe>Propane
Propane Swaps >LPG>Northwest PA0002721 6 1, 2 1, 2, 3 USD/t Daily NWE month Europe>Propane
Propane Swaps >LPG>Northwest PA0002722 6 1, 2 1, 2, 3 USD/t Daily NWE month Europe>Propane
Propane Far >LPG>Northwest PA0002723 6 1, 2 1, 2, 3 East Index swap USD/t Daily Europe>Propane month
See the original announcement.
January 2015 35 Natural Gas
NYMEX Delists Four Natural Gas Futures Contracts On January 5, 2015, the New York Mercantile Exchange (NYMEX) delisted four energy futures contracts, as set out in the table below. The contracts were listed for trading on the NYMEX trading floor, CME Globex, and for submission for clearing through CME ClearPort. There was no open interest in these contracts. Rule Contract Code Chapter
Transco Zone 2 Natural Gas (Platts IFERC) Basis Futures 8F 436
Transco Zone 2 Natural Gas (Platts Gas Daily/Platts IFERC) Index Futures L7 443
Transco Zone 2 Natural Gas (Platts Gas Daily) Swing Futures X3 648
MISO Indiana Hub Day-Ahead Off-Peak Calendar-Month 5 MW Futures FDM 1072
See the original announcement.
January 2015 36 Coal 37 Frequency Weekly Weekly Weekly Weekly
Category ->Coal->Baltic ->Coal->Baltic ->Coal->Europe ->Coal->Europe Unit USD/t USD/t USD/t USD/t © Graph created with ZEMA Description Coal PCI low-vol fob Baltic Coal PCI mid-vol fob Baltic Coal PCI low-vol cif ARA Coal PCI mid-vol cif ARA Continuous forward 0 0 0 0 Price type 8 8 8 8 Time stamp 6 6 6 6
PA-code PA0015600 PA0015601 PA0015602 PA0015603 January 2015 analyses and make effective decisions. To learn more, book a complimentary demonstration. analyses and make effective decisions. To learn Easily customizable graphs like this can be built in ZEMA, to create simple or complex in ZEMA, to create simple or complex Easily customizable graphs like this can be built 2014. In 2014, net coal production is less volatile as compared to average coal production. as compared to average coal 2014. In 2014, net coal production is less volatile volatility in months of April-May and August-September, as compared to same months in as compared to same months volatility in months of April-May and August-September, 2012 and January 2015 (EIA data). In 2012 and 2013, the production of coal shows high 2013, the production of coal shows 2012 and January 2015 (EIA data). In 2012 and ZEMA graph below shows the weekly coal production rate in United States between January rate in United States between ZEMA graph below shows the weekly coal production See the original announcement.
Effective January 14, 2015, Argus introduced the following new series to the the following new 14, 2015, Argus introduced Effective January Argus EuropeanAdds New Coal Assessments now appear in the DSteelFeedstocks module in the DSteelFeedstocks folder module in the DSteelFeedstocks folder now appear in the DSteelFeedstocks publication and data module. The following PA codes details PA codes details and data module. The following Feedstocks publication Argus Steel on ftp.argusmedia.com. Softs and Metals 38
FIX/FAST and iLink: tag 55-Symbol FIX/FAST and iLink: tag 55-Symbol Group MDP 3.0 tag 1151 - Security JX JX © Graph created with ZEMA CCP CCC FIX/FAST and iLink: tag 1151-Security FIX/FAST and iLink: tag 1151-Security Group MDP 3.0: tag 6937-Asset
Cocoa future Cocoa NY (ICE) future Product January 2015 The ZEMA graph below shows historical NYMEX cocoa future settlement prices The ZEMA graph below shows historical NYMEX cocoa ZEMA regularly collects more than 100 data reports on softs. To learn more about ZEMA’s extensive data coverage, visit coverage, learn more about ZEMA’s extensive data ZEMA regularly collects more than 100 data reports on softs. To http://www.ze.com/the-zema-solutions/data-coverage/. 365 days. See the original announcement. previous were the lowest point of the 2015. The prices in the third week of January 2015 week of September 2014 to a low of around $2,725 USD/ton in the third week of January USD/ton in the third week of week of September 2014 to a low of around $2,725 submission via CME ClearPort: in the third of just over $3,200 USD/ton is represented in $USD/ton and ranges from a high has listed the following Cocoa futures for trading on CME Globex and for clearing clearing futures for trading on CME Globex and for has listed the following Cocoa The data 19, 2014 – January 19, 2015. (NYMEX Code: CJ) on a weekly basis from January
CME Lists Cocoa Futures the Chicago Mercantile Exchange (CME) Europe In the first quarter of 2015, SOFTS Softs and Metals 39
Monthly average: PHAPR03 Monthly average: HPAPT03 HPAPS00 PHAPQ00
DOP FD NWE DOP FOB Rdam
Commodity Index, the Nikkei-TOCOM Nearby Month Commodity Index, and the Nikkei-TOCOM Commodity Index, and the Nikkei-TOCOM Commodity Index, the Nikkei-TOCOM Nearby Month TOCOM and Nikkei have removed Raw Sugar Futures as a component of the Nikkei-TOCOM as a component of the Nikkei-TOCOM TOCOM and Nikkei have removed Raw Sugar Futures Commodity Index. • jointly published Nikkei-TOCOM removed raw sugar futures as a component of the January 2015 On February 2, 2015, The Tokyo Commodity Exchange (TOCOM) and Nikkei On February 2, 2015, The Tokyo Commodity Exchange • See the original announcement. Futures Sugar TOCOM Discontinue Raw Nikkei and ICE Futures US also lists a US-based cocoa contract, which will continue to trade unchanged. to trade a US-based cocoa contract, which will continue ICE Futures US also lists in the Platts price database: PCA160 and were found under the following codes with the only difference being currency. with the only difference being to be published on page phthalate assessments. These assessments used combined basis. The physical terms of the contract will remain identical in all delivery months, all delivery terms of the contract will remain identical in combined basis. The physical Europe will apply accountability levels and delivery limits across the two contracts on a on contracts levels and delivery limits across the two Europe will apply accountability Platts Discontinues Northwest European DOP Assessments European dioctyl On January 2, 2015, Platts discontinued its Northwest facility. For contract months with both pound sterling and euro contracts listed, ICE Futures Futures listed, ICE with both pound sterling and euro contracts facility. For contract months Europe will facilitate transfers of open interest between the contracts via a block trading via a block interest between the contracts transfers of open Europe will facilitate about ZEMA’s vast data library, ZEMA collects 15 data reports specifically on grain. To learn more For customers wishing to transfer existing London cocoa open interest positions, ICE Futures interest positions, London cocoa open wishing to transfer existing For customers See the original announcement. regulatory processes. regulatory processes. Wheat (CSOs) for the North American Hard Red Spring calendar spread options April 2015, with a first maturity of December 2015, subject to completion of relevant completion of relevant 2015, subject to a first maturity of December April 2015, with MGEX Launches Spread Options Wheat Calendar Grain Exchange (MGEX) launched On February 2, 2015, Minneapolis euro-denominated cocoa futures and options contracts are expected to be launched in to be launched options contracts are expected cocoa futures and euro-denominated See the original announcement. HRSW CSOs will be available for trade on CME Globex. (HRSW) contract. MGEX visit http://www.ze.com/the-zema-solutions/data-coverage/. the existing London cocoa contract, which is denominated in pound sterling. The which is denominated in cocoa contract, the existing London Effective April 2015, Intercontinental Exchange (ICE) Futures Europe will Europe (ICE) Futures Exchange Intercontinental April 2015, Effective parallel with operate in which will cocoa contract, currency a new euro introduce ICE Futures Europe to Introduce Euro New Cocoa Contract Softs and Metals 40
Gold Kilo Futures GCK 114 One kilogram (32.15 troy ounces) is regularly conducted in the following Trading in Gold Kilo futures month; (2) the next two calendar months: (1) the current calendar and months; and (3) each February, April, June, August, October, with the cur- December falling within a 12- month period beginning rent contract month. days are Three business days prior to the delivery day. Business based on the US and Hong Kong public holiday calendars. Third Wednesday of the delivery month $0.10 $3.215 April 2015 10 contracts
Commodity Code Rulebook Chapter Contract Size Listing Schedule Termination of Trading Delivery Day Minimum Price Fluctuation Value per Tick First Listed and Delivery Block Trade Minimum Threshold Contract Name January 2015 ZEMA collects more than 200 metals records, many of which contain futures data. To receive a complimentary ZEMA futures data. To receive a complimentary ZEMA collects more than 200 metals records, many of which contain demonstration, visit http://www.ze.com/book-a-demo/. See the original announcement.
Effective January 26, 2015, Commodity Exchange, Inc. (COMEX) listed a Exchange, Inc. (COMEX) 26, 2015, Commodity Effective January COMEX Lists GoldKilo Futures Contract are provided below: The contract specifications trading floor and CME Globex and for submission for clearing through CME ClearPort. and for submission for clearing through CME trading floor and CME Globex Nikkei-TOCOM Raw Sugar Index has also been discontinued. discontinued. has also been Sugar Index Raw Nikkei-TOCOM See the original announcement. METALS points for this contract. The delivery Gold Kilo Futures new physically-delivered COMEX for trading on the contract is now available located in Hong Kong. This contract are Agricultural Product & Sugar Index and revised the respective component weightings. The The weightings. component the respective revised and Index Sugar & Product Agricultural Softs and Metals 41
January 2015 See the original announcement. the weekly FOB Antimony Price (MMACZ00). Platts FOB Weekly Publishing Price China Antimony Stops and publishes Effective December 18, 2014, Platts no longer assesses See the original announcement. Platts Discontinues Indium Assessments CIF Japan Weekly the weekly spot CIF As of December 23, 2014, Platts no longer publishes Japan indium import price assessment (AAVSH00). See the original announcement. official website. price obtained from the Kuala Lumpur Tin Market that can now be obtained from the KLTM the from Lumpur Tin Market that can now be obtained price obtained from the Kuala As Platts has reported, this is not a Platts assessment, but a third-party exchange is not a Platts assessment, but a third-party exchange As Platts has reported, this Platts Discontinues Quarterly Ore Lump Contract Price publication of the Effective December 31, 2014, Platts discontinued on a quarterly basis. Premium (IOCLP00), rather than being negotiated to refocus its market reporting on FOB China price assessments for this steel product. China price assessments market reporting on FOB to refocus its same KLTM price. See the original announcement. Lump on the average of the Platts Spot and Australian producers to being priced-based China has emerged as a major exporter wire rod to the region in recent years. Platts is seeking in recent years. Platts wire rod to the region as a major exporter China has emerged daily (MMAYA00) published in US $/mt, using the from the actual KLTM price to the are linked Platts has ceased to publish all three codes that As such, please note that contracts between Chinese mills The discontinuation reflects the shift in lump term price assessment of Wire Rod Mesh Quality CFR East Asia (SB01245). (SB01245). CFR East Asia Mesh Quality of Wire Rod price assessment number price, published in US cents/lb, is a converted tin price (MMAAY10). This rate (MCAAG00). Malaysian Ringgit exchange (IOPLC00). quarterly Australia Lump Premium Contract Price As of December 31, 2014, Platts has ceased to publish the daily Kuala Lumpur ceased to publish the daily 31, 2014, Platts has As of December See the original announcement. Platts Kuala Lumpur of Daily DiscontinuesPublication Tin Price
Effective February 27, 2015, Platts will discontinue publication of the monthly of the publication will discontinue 27, 2015, Platts February Effective Plattsto Discontinue East Asian Wire Price Rod Assessments Softs and Metals 42
New Description Flotta Gold monthly avg Flotta Gold quarterly avg Flotta Gold snapshot Flotta Gold weekly avg Old Description Flotta monthly avg Flotta quarterly avg Flotta snapshot Flotta weekly avg
PA Code PA5000019 PA5000144 PA5000282 PA5000450 January 2015 See the original announcement. Effective January 9, 2015, Argus renamed the following crude codes to Effective January 9, 2015, tungsten APT price assessment (MMAHF00). tungsten APT price assessment See the original announcement. FlottaArgus Renames Gold Codes by the field operator: follow a similar name change China ferrotungsten price assessment (MMAHL00) or the weekly FOB China assessment (MMAHL00) or the weekly FOB China China ferrotungsten price Effective December 18, 2014, Platts no longer publishes the weekly FOB 2014, Platts no longer publishes the weekly FOB Effective December 18, Platts Prices Discontinues FOB Weekly China Tungsten Finance 43
Code ILS PLE PLN ETR TRM
Contract Israeli shekel / US dollar Polish zloty / Euro Polish zloty / U.S. dollar Turkish lira / Euro Turkish lira / US dollar January 2015 Effective January 12, 2015, ICE added five new currency pairs to its lineup Effective January 12, 2015, ICE added five new currency methodology to the CME Group’s FX options on Dollar/Euro, Dollar/BP, and methodology to the CME Group’s FX options on Dollar/Euro, LaunchesICE Futures US Five Forex Contracts New traded on ICE Futures US: of forex contracts. The following contracts are being The value of each Index is derived from applying the proprietary CBOE Volatility Index (VIX) the proprietary CBOE Volatility Index The value of each Index is derived from applying regarding Chicago Board of Trade financial ZEMA collects many records from the Chicago Mercantile Exchange data into more about how to transform this collected information, including the CBOT Futures daily price record. To learn useful market intelligence, visit http://www.ze.com/the-zema-suite/market-analyzer/. accounted for a combined 80% of the over 15 million total currency options traded at CME. total currency options traded accounted for a combined 80% of the over 15 million See the original announcement. The underlying options are the most liquid FX options traded at the CME, and in 2014, and in 2014, the most liquid FX options traded at the CME, The underlying options are JYVIX) are the first benchmarks to track the volatility of foreign exchange (FX) futures options. options. futures to track the volatility of foreign exchange (FX) JYVIX) are the first benchmarks Volatility IndexSM (symbol: BPVIX), and the CBOE/CME FX Yen Volatility IndexSM (symbol: (symbol: BPVIX), and the CBOE/CME FX Yen Volatility IndexSM Volatility IndexSM (symbol: The CBOE/CME FX Euro Volatility IndexSM (symbol: EUVIX), the CBOE/CME FX British Pound FX British Volatility IndexSM (symbol: EUVIX), the CBOE/CME The CBOE/CME FX Euro Yen futures options. that it began disseminating values for three new volatility indexes that CBOE values for three new volatility indexes that CBOE that it began disseminating Dollar/Japanese of CME Dollar/Euro, Dollar/British Pound, and calculates using the prices Dollar/Yen futures.
on FX Options Contracts Chicago Board Options Exchange (CBOE) announced On January 13, 2015, the CBOE Begins Distributing Volatility Index Values Distributing Begins VolatilityCBOE Values Index Finance 44
© Graph created with ZEMA
(CDOR) and Canadian Overnight Repo Rate Average (CORRA). (CDOR) and Canadian Overnight Repo Rate Average administer Canada’s two key interest rate benchmarks: the Canadian Dollar Offered Rate the Canadian Dollar Offered administer Canada’s two key interest rate benchmarks: January 2015
Two Key Interest Benchmarks Rate Key Two its appointment to On January 6, 2015, Thomson Reuters announced Thomson Reuters Appointed to Administer Canada’s Thomson Reuters Appointed to Administer Canada’s of sovereign single names, and ICE Clear Europe has added Austria and Belgium. has added Austria and Belgium. of sovereign single names, and ICE Clear Europe can collect, aggregate, and analyze data, ZEMA collects 130 ICE records. To learn more about how ZEMA book a complimentary ZEMA demonstration now at http://www.ze.com/book-a-demo/. single names. ICE Clear Credit has added Portugal, Ireland, Italy, and Spain to its suite Ireland, Italy, and Spain to its single names. ICE Clear Credit has added Portugal, See the original announcement. and ICE Clear Europe introduced credit default swap (CDS) clearing for additional sovereign (CDS) clearing for additional and ICE Clear Europe introduced credit default swap Effective January 5, 2015, Intercontinental Exchange (ICE) Clear Credit Effective January 5, 2015, Intercontinental Exchange Sovereign CDSSovereign Instruments ICE Launches for Clearing Additional European is a straight exchange conversion using data from Bank of Canada. is a straight exchange conversion dollar. In each case, the exchange with the US dollar is always valued beneath the Euro. This valued beneath the the US dollar is always case, the exchange with dollar. In each over the Euro and US dollar; the two gray lines represent the Turkish Iira over the Euro and US Turkish Iira over the gray lines represent the and US dollar; the two over the Euro five years. The red line represents the Israeli ILS; the two blue lines represent the Polish zloty lines represent the Israeli ILS; the two blue red line represents the five years. The Colombian peso, Indian rupee, Mexican peso, and Russian ruble. and Russian Mexican peso, rupee, peso, Indian Colombian the past have behaved over how five foreign exchanges below demonstrates The ZEMA graph join ICE’s offering of emerging market currency contracts, which include the Brazilian real, the Brazilian which include contracts, market currency emerging offering of join ICE’s See the original announcement. recognized US dollar benchmark and ICE’s offering of nearly 60 currency contracts. They also They also contracts. 60 currency offering of nearly and ICE’s benchmark US dollar recognized These contracts will trade alongside the ICE US Dollar Index (USDX) future, the most widely widely most the future, (USDX) Index Dollar ICE US the alongside will trade contracts These Finance 45
January 2015 ZEMA collects more than 300 financial records from many different sources including several from Bloomberg. To stay sources including several from Bloomberg. ZEMA collects more than 300 financial records from many different booking a free demonstration: informed on the latest financial developments, try ZEMA now by See the original announcement. administrator, calculation agent and publication agent by March 31, 2015. administrator, calculation CDOR administrator on December 31, 2014 and is working to assume the role of CORRA CORRA role of 31, 2014 and is working to assume the CDOR administrator on December http://www.ze.com/book-a-demo/. Thomson Reuters currently calculates and distributes CDOR; it assumed the role of the role calculates and distributes CDOR; it assumed Thomson Reuters currently ETFs. the primary market of fixed income The result is the first comprehensive solution for Canada collateral. Income Trading (FIT) solutions. (TSOX), Portfolio Analytics and Risk (PORT), and Fixed of brokers, which involve general (non-specific) Government designated inter-dealer ETF Tool Basket the Bloomberg Fixed Income On December 19, 2014, Bloomberg introduced Execution Trading Solutions Order from across the Bloomberg terminal, including Bloomberg’s volume weighted average rate of overnight repo transactions, conducted on-screen through through on-screen rate of overnight repo transactions, conducted volume weighted average Bloomberg and SSGA Introduce Fixed Income functionality the SSGA criteria into The Bloomberg Fixed Income ETF Basket Tool incorporates used as the reference for overnight indexed swaps and related futures. CORRA is set as the set as is overnight indexed swaps and related futures. CORRA used as the reference for redeeming baskets of fixed income ETFs. CORRA is a measure of the average cost of overnight collateralized funding, and is widely is widely and average cost of overnight collateralized funding, CORRA is a measure of the See the original announcement. and automate the process of creating clients of State Street Global Advisors (SSGA) to exchange traded derivatives, and CAD$130 billion in floating-rate notes (FRNs). (FRNs). and CAD$130 billion in floating-rate notes exchange traded derivatives, solution for the first comprehensive exchange traded funds (ETFs). The new offering provides interest payments on approximately USD$9 trillion of interest rate swaps, CAD$750 billion in billion CAD$750 USD$9 trillion of interest rate swaps, interest payments on approximately income and construction of fixed ETF Basket Tool in order to further automate the workflow market-makers, including the major Canadian banks. CDOR is also used to determine is also used to determine Canadian banks. CDOR including the major market-makers, CDOR is determined daily from a survey of bid-side rates provided by seven principal by seven principal of bid-side rates provided daily from a survey CDOR is determined reference CDOR. to companies against primary BA issuance to clients with existing credit facilities that credit facilities to clients with existing against primary BA issuance to companies term of maturity of one year or less, and represents the rate at which banks are willing to lend which banks are willing represents the rate at of one year or less, and term of maturity CDOR is the recognized financial benchmark in Canada for bankers’ acceptances (BAs) with a (BAs) with acceptances for bankers’ in Canada benchmark financial is the recognized CDOR Investment Industry Association of Canada on June 2, 2014. on June 2, of Canada Association Industry Investment a tender process that was announced by the Canadian Bankers Association and the and Bankers Association Canadian by the was announced process that a tender Thomson Reuters was appointed as the administrator for both of these benchmarks following following benchmarks these both of for administrator as the appointed was Reuters Thomson Finance 46
db x-trackers II iBoxx EUR High Yield 1-3 Bond UCITS ETF bond index ETF LU1109939865 0.35 percent non-distributing Markit iBoxx EUR Liquid High Yield 1-3 Index db x-trackers II iBoxx EUR High Yield Bond UCITS ETF db x-trackers II iBoxx EUR High bond index ETF LU1109942653 0.35 percent non-distributing Yield Index Markit iBoxx EUR Liquid High
ETF name Asset class ISIN Total expense ratio Distribution policy Benchmark Asset class ISIN Total expense ratio Distribution policy Benchmark ETF name High Yield reference index. investors to participate in the inverse performance of the Markit iBoxx EUR Liquid of the Markit iBoxx EUR Liquid investors to participate in the inverse performance January 2015 The db x-trackers II iBoxx EUR High Yield Bond Short Daily UCITS ETF enables The db x-trackers II iBoxx EUR High Yield Bond Short
prefer corporate bonds with a remaining maturity of one to three years. prefer corporate bonds with a remaining maturity The db x-trackers II iBoxx EUR High Yield 1-3 Bond UCITS ETF is available for investors who UCITS ETF is available for investors The db x-trackers II iBoxx EUR High Yield 1-3 Bond
variable interest rate. index. All the corporate bonds have sub-investment grade ratings with a fixed or grade ratings corporate bonds have sub-investment index. All the remaining time to maturity of between two and 10.5 years are admitted to the reference admitted to the reference two and 10.5 years are to maturity of between remaining time non-euro-zone companies with an outstanding minimum volume of €250 million plus a of €250 million minimum volume companies with an outstanding non-euro-zone and most liquid corporate bonds denominated in euros. Bonds from euro-zone and from euro-zone and in euros. Bonds corporate bonds denominated and most liquid The db x-trackers II iBoxx EUR High Yield Bond UCITS ETF tracks the performance of the largest the performance Bond UCITS ETF tracks II iBoxx EUR High Yield The db x-trackers in the XTF segment on Xetra. in the XTF segment As of January 12, 2015, Deutsche-Börse launched three new db x-trackers new db x-trackers three launched Deutsche-Börse 12, 2015, As of January tradable are now which Management, Asset & Wealth of Deutsche ETF section from the Deutsche-Börse Launches New X-Trackers Bond Index ETFsDeutsche-Börse Index Bond Launches X-Trackers New Finance 47
db x-trackers II iBoxx EUR High Yield Bond Short Daily UCITS ETF UCITS Daily Short Yield Bond High EUR II iBoxx db x-trackers ETF bond index LU1109944352 0.35 percent non-distributing High Yield Total Return Index Markit Short iBoxx EUR Liquid
Asset class ISIN ratio Total expense Distribution policy Benchmark ETF name ETF January 2015 See the original announcement. Trust Total US Market AlphaDEX ETF (Symbol: TUSA). On January 9, 2015, Nasdaq announced that First Trust will transfer the On January 9, 2015, Nasdaq announced that First as the First The new fund is now referred to of the Nasdaq AlphaDEX Total US Market Index. Listed on Nasdaq expenses) yield (before the fund’s fees and results that correspond generally to the price and on The Nasdaq Stock Market. The fund’s new investment objective will seek investment objective will seek investment on The Nasdaq Stock Market. The fund’s new investment ZEMA currently collects commodity futures data from NYSE. To learn about how to leverage ZEMA’s power to collect, learn about how to leverage ZEMA’s power ZEMA currently collects commodity futures data from NYSE. To http://www.ze.com/the-zema-solutions/. aggregate, and transform stock market data using ZEMA, visit Line EquityFirst Now Value Fund Index Allocation Trust now listed (Symbol: FVI) from NYSE Arca is First Trust Value Line Equity Allocation Index Fund The new index is currently being calculated and published in real-time through the The new index is currently being calculated and published See the original announcement. Large Cap Equal Weight Index or the NYSE Current 10 Year US Treasury Index. Large Cap Equal Weight Index or the NYSE Current dedicated to the US market and will combine a dynamic allocation to either the NYSE US allocation to either the NYSE dedicated to the US market and will combine a dynamic vehicles, including separately managed accounts, mutual funds and ETFs. The first index is mutual funds and ETFs. The first vehicles, including separately managed accounts, The new NYSE Dynamic Allocation Index strategies are designed for a variety of investment are designed for a variety of investment The new NYSE Dynamic Allocation Index strategies management and dynamic beta-management. management and dynamic Effective January 12, 2015, the New York Stock Exchange (NYSE) and Effective January 12, 2015, risk an intelligent for innovative index solutions combined with fulfill the increasing demand Index Family Index to family Indices the launch of the new NYSE Dynamic Allocation MYRA Capital announced market data platforms. NYSE Global Index Feed (GIF), available on all major See the original announcement. NYSE Group MYRA and Capital Launch NYSE Dynamic Finance 48
January 2015 ZEMA regularly collects more than 50 data reports from ICAP which can be incorporated into powerful ZEMA regularly collects more than 50 data reports from ICAP which See the original announcement. business day of that month and the following month respectively. business day of that month and the following month EBS will offer two fixed date EOM contracts at any time, with settlement dates set for the last time, with settlement dates set EBS will offer two fixed date EOM contracts at any systems. For further information, visit analyses and forward curves before being pushed to downstream http://www.ze.com/the-zema-suite/. announced that it completed a pilot and will launch the first purely electronic a pilot and will launch the first purely electronic announced that it completed one month O/R. EBS Launches Market End of Month Forward Indian Rupee ICAP’s market-leading electronic FX business, On January 5, 2015, EBS, the existing off- SEF and will complement access to all EBS participants that are able to trade access to a futures exchange for executing orders and hedging. The EOM INR NDF offers open offers INR NDF for executing orders and hedging. The EOM access to a futures exchange dates. The liquidity and tenor will be particularly appealing to customers that do not have not have that do will be particularly appealing to customers dates. The liquidity and tenor date contract which replicates the structure of a futures contract and aligns with INR futures INR futures with the structure of a futures contract and aligns date contract which replicates The Indian rupee (INR) contract, which is initially being launched off-SEF will be a liquid fixed liquid will be a which is initially being launched off-SEF The Indian rupee (INR) contract, Market platform. over-the-counter, end of month (EOM) non-deliverable forward (NDF) contract on the EBS the on month (EOM) non-deliverable forward (NDF) contract over-the-counter, end of Finance
Swedbank Robur Starts Clearing Interest Rate Swaps through Nasdaq On December 19, 2014, Nasdaq Clearing announced that Swedbank Robur, the largest Swedish fund manager, has started clearing of Interest Rate Swaps through the clearing bro- ker Swedbank. The OTC instruments available for clearing are Swedish Krona denominated Interest Rate Swaps, Overnight Index Swaps and Forward Rate Agreements. Nasdaq plans to expand the service to also include Danish Krona, Norwegian Krona, and Euro denominated instruments during 2015. Buy-side firms can access the OTC clearing service through approved OTC clearing members. See the original announcement.
ICAP’s EBS Collaborates with SGX on Asian Foreign Exchange Initiatives On January 14, 2015, ICAP and Singapore Exchange (SGX) announced a strategic partnership to boost the growing Asian currency market. EBS, ICAP’s market-leading electronic FX business, and SGX will collaborate and develop a new range of Asian currency products and services that complement the FX OTC and futures markets in Asia. The collaboration between SGX and EBS will strengthen the liquidity in both the FX OTC and futures markets in Asia. Together EBS and SGX will develop new business opportunities and product offerings leveraging each of their unique assets, market presence, and relationships throughout Asia. EBS and SGX will initially offer customers access to SGX listed currency derivatives via the EBS platforms, to be cleared by SGX. Through this collaboration, customers will be able to execute and clear selected SGX Asian FX Futures contracts in specific large sizes called Negotiated Large Trades. Subject to respective regulatory approvals, EBS and SGX plan to implement this initiative in the third quarter of 2015. EBS is also exploring the opportunity to establish an additional matching engine in Singapore, to be located in an SGX hosted facility, which would facilitate the execution of joint business opportunities and product offerings. See the original announcement.
January 2015 49 Weather and Emissions 50
forecast weather data, and more. To learn more about ZEMA’s data coverage, forecast weather data, and more. To learn more about ZEMA’s visit http://www.ze.com/the-zema-solutions/data-coverage/. will be assessed daily by Platts. and including February 29, 2016. On March 1, 2016, CSAPR allowances for 2016 and 2017 CSAPR allowances for 2016 and including February 29, 2016. On March 1, 2016, following year. For example, CSAPR allowances for 2015 and 2016 will be assessed up to 2015 and 2016 will be assessed following year. For example, CSAPR allowances for assessments for its Year 1 CSAPR allowances on the last business day of February of the the last business day of February assessments for its Year 1 CSAPR allowances on For 2016, the codes will be the same except the final digit will be 6. Platts will expire its daily final digit will be 6. Platts will expire For 2016, the codes will be the same except the about hydrology, actual and ZEMA collects over 200 weather market records containing information ENOXA15. See the original announcement. listed under the code ENOXS15; and Annual NOx allowances will be listed under the code allowances will be listed under listed under the code ENOXS15; and Annual NOx allowances will be listed under the code ESO2215; Seasonal NOx allowances will be Seasonal NOx allowances will allowances will be listed under the code ESO2215; For 2015, Group 1 SO2 allowances will be listed under the code ESO2115; Group 2 SO2 under the code ESO2115; Group For 2015, Group 1 SO2 allowances will be listed and Megawatt Daily. The new assessments appear daily in Coal Trader Appeals for the District of Columbia Circuit for the EPA’s CSAPR program in October. Appeals for the District of Columbia Circuit for the relevancy of the federal emissions program due to the lifting of a stay by the US Court of the lifting of a stay by the US Court relevancy of the federal emissions program due to The assessments, which replaced those for 2012 and 2013, respectively, follow a return to and 2013, respectively, follow The assessments, which replaced those for 2012 Pollution Rule (CSAPR). 2015 and 2016 created by the US Environmental Protection Agency’s Cross-State Air by the US Environmental Protection Agency’s Cross-State 2015 and 2016 created types and vintages of sulfur dioxide and nitrogen oxides emission allowances for each year each for dioxide and nitrogen oxides emission allowances types and vintages of sulfur Allowance AssessmentsAllowance for 2015, 2016 eight has started publishing daily assessments for As of January 5, 2015, Platts Platts Cross-State Publishing Begins Pollution Air Rule January 2015 Weather and Emissions AccuWeather Releases New Android Wear App with MinuteCast On January 6, 2015, AccuWeather announced that the AccuWeather app for Android is available for Android Wear, providing users with all the weather information they need wherever they go. Android Wear brings you useful information when you need it most, at a glance on your wrist. AccuWeather’s app for Android Wear features AccuWeather MinuteCast, the only global minute-by-minute precipitation forecast for a person’s exact street address or GPS location. AccuWeather MinuteCast includes precipitation type and intensity, as well as start and end times for precipitation, and gives users by-the-minute precipitation forecasts for the next two hours. AccuWeather MinuteCast is currently available for the contiguous United States, Canada, Japan, Ireland, France, Germany, Belgium, Switzerland, Netherlands, Luxembourg, the United Kingdom, and parts of the Czech Republic, with additional locations to come. AccuWeather for Android Wear, and for Android smartphones and tablets, is available from Google Play. See the original announcement.
The ZEMA graph below shows an annual comparison between January 2014 vs. January 2015 of the total precipitation across British Columbia (Environment Canada data). Precipitation levels reached a high of 23mm for January 2015, as opposed to a high of 19mm for 2014. For values after January 26, 2015, a trend line was created using data from the same time period. To learn more, book a complimentary ZEMA demonstration.
© Graph created with ZEMA
January 2015 51 News from Data Vendors 52
http://www.gaspointnordic.com/market-data http://www.federalreserve.gov/econresdata/default.htm http://www.rte-france.com/en/accueil https://www.rbccm.com/fixedincomenotes/cmsbenchmarkrates/ http://www.spp.org/section.asp?pageid=3 http://www.ercot.com/mktinfo http://www.epexspot.com/en/market-data http://www.omip.pt/OMIP/tabid/62/language/en-GB/Default.aspx http://www.caiso.com/1798/1798ea1b23080.html http://www.iso-ne.com/markets-operations
http://www.ze.com/the-zema-solutions/data-coverage/. To see the full list of ZEMA data providers, visit • • • • • • • January 2015 • • • For further information on these reports, visit: from RBC and St. Louis ICE Libor rates from the Federal Reserve. currency-based reports are now being collected in the form of benchmark CAD CMS rates in the form of benchmark CAD CMS currency-based reports are now being collected in response to a need for more varied and timely electricity-related data. As well, additional additional As well, more varied and timely electricity-related data. in response to a need for prices and volumes. These expansions of ZE’s data collection targets have been implemented implemented been expansions of ZE’s data collection targets have prices and volumes. These And the OMIP reports include MIBEL futures and options as well as daily and hourly spot spot and hourly MIBEL futures and options as well as daily And the OMIP reports include reports. The four CAISO MRTU reports concern scheduling point/tie combination LMP data. LMP reports concern scheduling point/tie combination reports. The four CAISO MRTU data including real-time and day-ahead NCPC payment, settlement, and generator posturing posturing generator and day-ahead NCPC payment, settlement, and data including real-time Federal Reserve, and Gaspoint Nordic. The 42 NEISO reports span a wide range of electricity of electricity range Nordic. The 42 NEISO reports span a wide Federal Reserve, and Gaspoint NEISO, CAISO MRTU, OMIP, OMIClear, EPEX, ERCOT Nodal, SPP IMT, RBC, RTE France, the the RTE France, OMIClear, EPEX, ERCOT Nodal, SPP IMT, RBC, NEISO, CAISO MRTU, OMIP, , ZE has added numerous data reports published by , ZE has added numerous Since the last issue of ZE DataWatch and private data reports, including reports that are collected based on clients’ specific needs. needs. specific including reports that are collected based on clients’ and private data reports, Exchange, and OPEC. ZE then provides its clients with access to both public (free subscription) then provides its clients with access to both public Exchange, and OPEC. ZE Chicago Mercantile Exchange, the New York Mercantile Exchange, the Intercontinental the New York Mercantile Exchange, the Intercontinental Chicago Mercantile Exchange, natural gas, electricity, agriculture, and finance industries, including Platts, Argus, the Platts, Argus, finance industries, including electricity, agriculture, and natural gas, and commodity data changes. ZE collects data from vendors spanning the weather, oil, spanning the weather, data from vendors data changes. ZE collects and commodity New JanuaryNew Sources Data in energy to date on the latest has consistently kept up ZE PowerGroup Inc. (ZE) For 20 years, ZEMA Numerous Adds Electricity Reports Its to News from Data Vendors 53
FutureSource solution, watch the recent webinar video. FutureSource solution, watch the recent webinar January 2015 Click here to register for this upcoming Lunch and Learn. To find out more about the ZEMA- Learn. To find out more about the Click here to register for this upcoming Lunch and with the product demonstration at the event. FutureSource solution. As well, Jim Ekstrand, IDCO’s Senior Product Manager, will be assisting Senior Product Manager, will FutureSource solution. As well, Jim Ekstrand, IDCO’s of an integrated ZEMA- demonstrate to attendees the advantages and functionalities Waleed El-Ramly, Chief Product Officer at ZE, will be present at the Lunch and Learn to be present at the Lunch and Learn Waleed El-Ramly, Chief Product Officer at ZE, will built with ZEMA, and easily export this information to Excel for further analysis. built with ZEMA, and easily export this information the enhanced ability to chart and analyze market content, display powerful forward curves content, display powerful forward the enhanced ability to chart and analyze market respond to rapid changes in markets and conditions. Additionally, IDCO provides users with Additionally, IDCO provides respond to rapid changes in markets and conditions. ZEMA-FutureSource solution empower front-, middle-, and back-office personnel to quickly and back-office personnel ZEMA-FutureSource solution empower front-, middle-, At the event, attendees will discover how the advanced visualization functionalities of the visualization functionalities At the event, attendees will discover how the advanced ZEMA’s data collection and curve management tools within FutureSource terminals. curve management tools within FutureSource ZEMA’s data collection and the benefits of the integrated ZEMA-FutureSource solution, which enables clients to access to access clients ZEMA-FutureSource solution, which enables the benefits of the integrated at Willie G’s Seafood and Steaks in Houston, TX. At the event, ZE and IDCO will demonstrate will demonstrate Steaks in Houston, TX. At the event, ZE and IDCO at Willie G’s Seafood and Corporation (IDCO), a provider of financial information services, from 10:30 a.m. - 2:00 p.m. - 2:00 a.m. of financial information services, from 10:30 Corporation (IDCO), a provider in Houston, TX Data will co-host a Lunch and Learn with partner Interactive On February 19, 2015, ZE ZE and Interactive Co-Host Data Integration Lunch and Learn News from Data Vendors 54
provides its members with access to all products on one single platform and allows them to on one single platform and allows provides its members with access to all products PEGAS is the central gas trading platform of EEX Group, operated by Powernext. PEGAS Group, operated by Powernext. PEGAS is the central gas trading platform of EEX About PEGAS: www.powernext.com 50% in EPEX SPOT, 20% in EEX Power Derivatives and 1.5% in ECC. For more information: and 1.5% in ECC. For more information: 50% in EPEX SPOT, 20% in EEX Power Derivatives operates the National Registry for electricity guarantees of origin in France. Powernext owns of origin in France. Powernext operates the National Registry for electricity guarantees natural gas activities of the EEX Group under the PEGAS brand throughout Europe, and PEGAS brand throughout Europe, natural gas activities of the EEX Group under the Powernext is a regulated market operating under AMF supervision. Powernext manages the AMF supervision. Powernext manages Powernext is a regulated market operating under About Powernext: Group. For more information: www.eex.com by the central clearing house European Commodity Clearing. EEX is part of Deutsche-Börse Clearing. EEX is part of Deutsche-Börse by the central clearing house European Commodity Clearing and settlement of transactions concluded or registered on the exchanges is provided or registered on the exchanges Clearing and settlement of transactions concluded at the European Energy Exchange, EPEX SPOT, Powernext, Cleartrade and Gaspoint Nordic. Cleartrade and Gaspoint at the European Energy Exchange, EPEX SPOT, Powernext, group comprises contracts for Energy, Environmentals, Freight, Metals and Agriculturals listed Freight, Metals and Agriculturals group comprises contracts for Energy, Environmentals, January 2015 products and enables access to a network of over 350 trading participants. The offering of the 350 trading participants. The offering products and enables access to a network of over EEX Group provides the central market platform for energy, energy related and commodity energy, energy related and commodity EEX Group provides the central market platform for About EEX: Powernext holding 55.8 percent of the shares. Assembly. Therefore, with effect from January 1, 2015, EEX is majority shareholder of 2015, EEX is majority shareholder Assembly. Therefore, with effect from January 1, The change in Powernext’s shareholding structure has been formally validated by its General has been formally validated by The change in Powernext’s shareholding structure the offering is an important step and a perfect launch pad for future developments of PEGAS.” step and a perfect launch pad for future developments the offering is an important “The successful migration shows the high level of commitment of our members. Harmonizing shows the high level of commitment of our members. “The successful migration Dr. Egbert Laege, the newly appointed Executive Director Gas Markets of EEX Group, adds: adds: EEX Group, appointed Executive Director Gas Markets of Dr. Egbert Laege, the newly pan-European natural gas offering.” pan-European natural gas platform with only one Powernext membership. This development serves our vision of a of our vision membership. This development serves platform with only one Powernext products available on PEGAS and provides trading for major European gas hubs on one on one hubs and provides trading for major European gas products available on PEGAS Officer of Powernext, comment: ”With this step, EEX Group facilitates access to all natural gas natural to all ”With this step, EEX Group facilitates access Officer of Powernext, comment: Peter Reitz, Chief Executive Officer of EEX, and Jean-François Conil-Lacoste, Chief Executive Executive Chief Officer of EEX, and Jean-François Conil-Lacoste, Peter Reitz, Chief Executive transfer of the majority shares in Powernext to EEX has been completed. transfer of the majority shares 154 participants are now admitted to trading natural gas products on PEGAS. The formal formal The admitted to trading natural gas products on PEGAS. 154 participants are now total, In are operated by Powernext under the brand PEGAS. activities of the EEX Group NCG and GASPOOL Open Interest to Powernext on January 1, 2015. As of now, all natural gas 2015. As of now, all Powernext on January 1, Open Interest to NCG and GASPOOL successfully migrated all active EEX gas market members representing 100 percent of the 100 percent market members representing migrated all active EEX gas successfully The European Energy Exchange (EEX) and Powernext have Energy Exchange (EEX) January 6, 2015 – The European Leipzig, Paris, Harmonization of PEGASHarmonization Markets Successfully Completed News from Data Vendors 55
January 2015 [email protected] + 1 713 968 0000 Houston Gabriela Alcocer Terms of the acquisition were not disclosed. we are all excited to join.” benefit of Argus’ international reputation, technical resources and global editorial team, which resources and global editorial benefit of Argus’ international reputation, technical deepens its metals coverage. The MetalPrices service will go from strength to strength with the will go from strength to strength deepens its metals coverage. The MetalPrices service MetalPrices.com president Marc Dulin said: “We are delighted to become part of Argus as it are delighted to become part of MetalPrices.com president Marc Dulin said: “We coverage of metals markets.” Metal-Pages in May 2014. This acquisition complements this and extends Argus’ global this and extends Argus’ Metal-Pages in May 2014. This acquisition complements coverage of the ferro-alloy, minor metals and rare earth markets through our purchase of earth markets through our purchase coverage of the ferro-alloy, minor metals and rare metals coverage to include iron ore, coking coal and metallurgical coke services as well as metals coverage to include iron ore, coking coal Argus’ expanding energy and commodities portfolio. In recent years we have increased our In recent years we have increased Argus’ expanding energy and commodities portfolio. Argus Media chairman and chief executive Adrian Binks said: “MetalPrices is a natural fit for Binks said: “MetalPrices is a natural Argus Media chairman and chief executive Adrian Heavy Melt Weekly and News Flash. website and through weekly publications, Ferrous Scrap Price Index Daily and Marley’s Scrap Price Index Daily and Marley’s website and through weekly publications, Ferrous non-ferrous secondary metal markets. The data are available through the MetalPrices.com available through the MetalPrices.com non-ferrous secondary metal markets. The data are trusted for indexation and market analysis especially in North American ferrous and trusted for indexation and market analysis especially nearly 300 metals price assessments each week. These proprietary assessments are nearly 300 metals price assessments each week. the major exchanges, but which are essential to global trade. The company publishes publishes which are essential to global trade. The company the major exchanges, but over-the-counter (OTC) metal products — reporting the prices of metals that are not listed on listed are not products — reporting the prices of metals that over-the-counter (OTC) metal Founded in 1995, MetalPrices’ main focus is price assessments for open-market or main focus is price assessments for open-market Founded in 1995, MetalPrices’ metals sector. world. The acquisition will further increase the range of Argus information available to the to available further increase the range of Argus information world. The acquisition will prices and other exchange data, and third-party assessments of market prices around the around data, and third-party assessments of market prices prices and other exchange information. The acquired online service includes proprietary price assessments, futures futures online service includes proprietary price assessments, information. The acquired has bought MetalPrices.com, one of the world’s largest providers of metals market market one of the world’s largest providers of metals has bought MetalPrices.com, – Global energy and commodity price reporting agency Argus – Global energy and commodity Houston, January 12, 2015 Argus Acquires MetalPrices.com, Metals Expands Coverage more information: www.pegas-trading.com more information: enables market harmonization and forms the leading pan-European natural gas market. For market. For natural gas leading pan-European and forms the market harmonization enables hubs as well as trading in location spread products between these market areas. This setup This setup market areas. these between spread products in location well as trading hubs as product range of PEGAS covers spot and derivatives contracts for the major European gas major European for the contracts spot and derivatives covers range of PEGAS product trade natural gas contracts in the Belgian, Dutch, French and German market areas. The The areas. market German and French Dutch, Belgian, in the contracts gas natural trade News from Data Vendors 56
January 2015 producers and consumers as price references in long-term supply contracts, and by market long-term supply contracts, and producers and consumers as price references in throughout the Americas and globally. Argus price assessments are used by major energy throughout the Americas and globally. Argus price world. Its transparent price assessment methodology has been increasingly adopted has been increasingly adopted world. Its transparent price assessment methodology Argus coal price assessments are widely used in physical and derivative contracts around the Argus coal price assessments are widely used in feedstock in primary steel production. coking coal in the Americas. Coking coal is used to make metallurgical coke, which is a coking coal in the Americas. Coking coal is used Colombia is one of the top coal exporters in the world, and is the third-biggest exporter of and is the third-biggest exporter Colombia is one of the top coal exporters in the world, steps in the near future.” “We fully expect other growing and liberalising economies in Latin America to take similar in Latin America to take “We fully expect other growing and liberalising economies taxation and other purposes,” Argus Media chairman and chief executive Adrian Binks said. and chief executive Adrian taxation and other purposes,” Argus Media chairman “Argus price assessments are used extensively by governments as independent references for governments as independent references “Argus price assessments are used extensively by These freight assessments are available in Argus Coal Daily International and Argus Freight. Coal Daily International and Argus These freight assessments are available in Argus Rotterdam will be used to calculate a netback price from the northwest Europe trading hub. from the northwest Europe trading Rotterdam will be used to calculate a netback price API 2 index for this calculation. Argus’ assessment of Panamax rates from Colombia to of Panamax rates from Colombia API 2 index for this calculation. Argus’ assessment thermal coal produced in the central region of the country, joining the Argus/IHS McCloskey country, joining the Argus/IHS thermal coal produced in the central region of the Argus freight assessments have also been incorporated into Colombia’s coal royalties for into Colombia’s coal royalties Argus freight assessments have also been incorporated and ferrous scrap markets around the world. assessments are published in Argus Steel Feedstocks, a service covering coking coal, iron ore assessments are published in Argus Steel Feedstocks, America’s coal markets have rapidly adopted for robust, reliable price indexation. The The rapidly adopted for robust, reliable price indexation. America’s coal markets have Argus exclusively publishes these fob Colombia coking coal price assessments, which Latin these fob Colombia coking coal price assessments, Argus exclusively publishes ensure that the Colombian sector benefits when coking coal prices recover. ensure that the Colombian coal prices are low, keeping these industries competitive in international markets. And it will And markets. these industries competitive in international coal prices are low, keeping period of historically low prices. The Colombian program will provide relief for producers while for producers prices. The Colombian program will provide relief period of historically low market-based pricing will benefit all stakeholders in the country’s coal industry during a during benefit all stakeholders in the country’s coal industry market-based pricing will calculate market values for export shipments from the country’s coal mines. Colombia’s Colombia’s for export shipments from the country’s coal mines. calculate market values Colombian authorities will begin using Argus fob Colombia coking coal price assessments to assessments begin using Argus fob Colombia coking coal price Colombian authorities will Argus indexation in the thermal coal tax formula. Argus indexation in the thermal of market-based tax calculations to the coking coal sector and is joined by enhanced use of use enhanced to the coking coal sector and is joined by of market-based tax calculations commodity news and price reporting agency Argus. This expands Colombia’s innovative use innovative reporting agency Argus. This expands Colombia’s commodity news and price coking coal for royalty calculations using price assessments published by global energy and published by global price assessments royalty calculations using coking coal for Assessments Market in Volatile ANM has started pricing mining regulatory agency 20, 2015 – Colombia’s Bogota, January Colombia Adopts Argus Coking Coal and Freight News from Data Vendors 57
January 2015 HGRT marks a new chapter for the European Power Exchange. “TSOs are most welcome as Exchange. “TSOs are most welcome HGRT marks a new chapter for the European Power The direct shareholdership of Electricity Transmission System Operators (TSOs) pooled in System Operators (TSOs) pooled The direct shareholdership of Electricity Transmission January 1, 2015. EEX is indirect majority shareholder of EPEX SPOT. The change has become effective on The change has become effective EEX is indirect majority shareholder of EPEX SPOT. Exchange Powernext. The share of Powernext in EPEX SPOT remains unchanged at 50%; SPOT remains unchanged Exchange Powernext. The share of Powernext in EPEX (formerly 50%). In exchange, EEX Group has received the 53% stake of HGRT in French Energy the 53% stake of HGRT in French (formerly 50%). In exchange, EEX Group has received taken a 36.7% share in EPEX SPOT. The shares originate from EEX which now holds 13.3% from EEX which now holds taken a 36.7% share in EPEX SPOT. The shares originate Transmission System Operators Elia (Belgium), RTE (France) and Tennet (Netherlands) has (France) and Tennet (Netherlands) Transmission System Operators Elia (Belgium), RTE European Power Exchange EPEX SPOT SE has changed: The holding HGRT of European The holding HGRT of European European Power Exchange EPEX SPOT SE has changed: Share in EPEX SPOT – The shareholder structure of the Paris / Leipzig / Bern / Vienna, January 19, 2015 Transmission System OperatorsTransmission Jointly Elia, 36.7% RTE take and Tennet More info at http://www.carbonmarketdata.com More info at http://www.carbonmarketdata.com of the country’s total greenhouse gas emissions. of the country’s total greenhouse The Korean emissions trading scheme currently includes 525 companies, accounting for 68% accounting scheme currently includes 525 companies, The Korean emissions trading ness-as-usual levels. This objective equates to a 4% reduction below 2005 emissions levels. emissions objective equates to a 4% reduction below 2005 ness-as-usual levels. This try’s goal to reduce its greenhouse gas emissions by 30 per cent to 2020 compared to busi- to compared gas emissions by 30 per cent to 2020 try’s goal to reduce its greenhouse The South Korea’s cap-and-trade system started on January 1, 2015, and is part of the coun- of the is part system started on January 1, 2015, and The South Korea’s cap-and-trade sions Trading Scheme Database. - Emis South Korea Market Data announced the launch of the On January 19, 2015, Carbon Carbon Market Data launches the launches South ETS Data Korea Carbon Market Database [email protected] + 1 713 968 0000 + 1 713 968 Houston Gabriela Alcocer price assessments. Request more information on Argus fob Colombia coking coal, freight rates and other Argus Argus other rates and coal, freight coking fob Colombia on Argus more information Request and a wide range of investment and market analysis purposes. and market investment wide range of and a participants for portfolio mark-to-market, counterparty exposure management, derivatives derivatives management, exposure counterparty mark-to-market, portfolio for participants direct shareholders of EPEX SPOT, with six seats out of the twelve Supervisory Board News from Data Vendors members, as they play a key role in integrating the European power market”, underlines Jean-François Conil-Lacoste, Chairman of the Management Board of EPEX SPOT and Executive Director Power Spot Markets of EEX. “At the same time, we reinforce our roots as an Exchange and become part of the EEX Group.” The deeper integration with TSOs supports EPEX SPOT in the coupling of the European power market. After the launch of the respective national Power Exchanges in France and Germany and the creation of the first transnational Power Exchange in continental Europe EPEX SPOT in 2008, the new shareholder structure sets the foundations for further growth of EPEX SPOT. The European Power Exchange EPEX SPOT SE operates the power spot markets for Germany, France, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT also acts as market operating service provider for the Hungarian Power Exchange HUPX and operates the coupling between the Czech, the Slovak, the Hungarian and the Romanian markets on behalf of the local Exchanges. It is a European company (Societas Europaea) based in Paris with branches in Leipzig, Bern and Vienna. Over 220 companies from Europe are active on EPEX SPOT. 382 TWh have been traded on EPEX SPOT’s markets in 2014. French-German Office for Renewable Energies and EPEX SPOT Issue Joint Paper on Direct Marketing of Renewable Energy
Paris / Berlin, January 20, 2015 – The French-German Office for Renewable Energies (DFBEE/OFAEnR), in cooperation with the European Power Exchange EPEX SPOT, has issued a background paper on direct marketing of renewable energy sources (RES). The paper analyzes market-based support schemes of renewable energy in France and Germany. It is available in German and in French. The support scheme via direct marketing in Germany exists since the amendment of the EEG Law (“Erneuerbare Energien Gesetz”) in 2012 and is a central element of the 2014 EEG amendment. It is also one of the key elements of the French energy transition act which will be discussed in the Senate from February on. In parallel to this development of RES, the European energy sector undergoes a fundamental transformation, with the ongoing liberalization of national power markets and the creation of an internal energy market. Against this background, EPEX SPOT discusses the following topics, amongst other things: With increasing intermittent production from RES, power markets in Europe are in need for flexibility. As a result, Intraday trading volumes have multiplied tenfold in the past five years.
January 2015 58 Direct marketing improves the market integration of RES. It delivers an incentive for an News from Data Vendors optimized production forecast and for load-based injection, being beneficial for the system. Market coupling in Europe smoothens prices and stabilizes costs. On January 29, the German-French Office for Renewable Energies organizes a conference on the “Development of support schemes and market integration of renewable energy sources in France and Germany” (program available in German and in French). It will take place in Berlin in the Federal Ministry for Economic Affairs and Energy. EPEX SPOT will speak about the role of the Exchange for market integration of renewables. The European Power Exchange EPEX SPOT SE operates the power spot markets for Ger- many, France, Austria and Switzerland (Day-Ahead and Intraday). Together these countries account for more than one third of the European power consumption. EPEX SPOT also acts as market operating service provider for the Hungarian Power Exchange HUPX and operates the coupling between the Czech, the Slovak, the Hungarian and the Romanian markets on behalf of the local Exchanges. It is a European company (Societas Europaea) based in Paris with branches in Leipzig, Bern and Vienna. Over 220 companies from Europe are active on EPEX SPOT. 382 TWh have been traded on EPEX SPOT’s markets in 2014. Since its creation in 2006 by the governments of Germany and France, the French-German Office for Renewable Energies (DFBEE / OFAEnR) has continuously developed in order to facilitate the exchange of information and proven methods between its members and to build bridges between the stakeholders from industry and politics of both countries. Today, the Office focuses on the RES with all their potential – wind, solar and biogas – as well as on many topics close to the energy transition such as electricity grids, energy storage, security of supply and RES market integration. The work of the DFBEE / OFAEnR is supported by compa- nies, industry associations and the governments of both countries. The offices in Berlin and Paris are integrated in the Bundesministerium für Wirtschaft und Energie and the Ministère de l’Écologie, du Développement durable et de l’Énergie which facilitates a close connection with political stakeholders.
Speedwell Weather Announces an Expansion of South American Coffee Monitoring in its Commodity Product Charleston, January 27, 2015 – Speedwell Weather is pleased to announce the continued expansion of the Speedwell Commodity Product. The latest addition focuses on increasing surface observation density in the important coffee producing regions of Brazil and Columbia. By expanding our access to surface observations in the key growing regions we are better able to understand the weather conditions impacting the crop. For each new observation point we are offering the standard suite of services including historical cleaned observations, ongoing cleaned observations, and Speedwell downscaled forecasts.
January 2015 59 Accounting for about 33% of global coffee production the importance of the Brazilian coffee News from Data Vendors crop is undeniable. The latest additions focus mainly on southern Minas Gerias and the surrounding areas where 60% of the Brazilian Arabica is grown as well as the important Medillin, Armenia and Manizales (MAM) region in Colombia which is where the famed soft Arabica beans are grown. Daniel Greenstein, Meteorological Analyst at Speedwell Weather says, “After a significant drought affected Brazilian coffee production last year, 2015 has started off dry. Speedwell’s enhanced Brazilian coffee index will give users a better idea if more trouble is on the horizon.” Access to the Speedwell Commodity Product statistical analysis and daily commentary reports provide traders with a unique perspective on the weather impacting the health of the crop. The Speedwell Commodity Product uniquely combines a highly quantitative approach to understanding historic and forecast weather in crop areas through the Commodity Product Desktop with comment and alerts via email. Based on our archive of tens of thousands of world-wide weather data sets, no other provider is able to match the density and quality of surface observations. To learn more about this product please visit: http://www.speedwellweather.com for additional information and a free trial. About Speedwell Weather: Founded in 1999, Speedwell Weather provides quality weather data, weather forecasts, software, and consultancy. From offices in the UK and the USA we serve clients world-wide in sectors including weather-risk management, energy, Insurance, and agriculture. Our data products include SuperPack, which provides unlimited access to our thousands of high quality world-wide weather data sets. Speedwell Weather is the dominant settlement agent for parametric weather risk contracts world-wide. For further information please see www.SpeedwellWeather.com or contact: Stephen Doherty (Europe) [email protected] David Whitehead (USA) [email protected] Nick Hammond (Media Contact) [email protected]
January 2015 60 Monthly Market Analysis 61 © Graph created with ZEMA © Graph created
January 2015 pressure on non-OPEC producers, such as the United States and Canada, to reduce output. States and Canada, to reduce pressure on non-OPEC producers, such as the United outpace demand. OPEC decided not to lower its production quota in November, placing more production quota in November, outpace demand. OPEC decided not to lower its Brent oil prices are already down 17% for the year, as global supply growth continues to as global supply growth continues Brent oil prices are already down 17% for the year, month, which was $4 USD/Bbl below the last 12-month average of $6 USD/Bbl. month, which was $4 USD/Bbl below the last 12-month Brent-WTI spread (represented by the purple area in the graph above) sat at $2 USD/Bbl this in the graph above) sat at $2 USD/Bbl Brent-WTI spread (represented by the purple area for Brent and WTI on NYMEX dropped to $96 USD/Bbl and $90 USD/Bbl, respectively. The and $90 USD/Bbl, respectively. for Brent and WTI on NYMEX dropped to $96 USD/Bbl $37 USD/Bbl below the last 12-month average. Furthermore, the last 12-month averages Furthermore, the last 12-month $37 USD/Bbl below the last 12-month average. and WTI oil prices traded near four-year lows—Brent and WTI traded at $43 USD/Bbl and USD/Bbl near four-year lows—Brent and WTI traded at $43 and WTI oil prices traded In January 2015, data from NYMEX prompt-month future settlements showed that Brent Brent that NYMEX prompt-month future settlements showed In January 2015, data from from $12 USD/bbl at the beginning of 2014 to $2 USD/bbl in January 2015. (Reuters) beginning of 2014 to $2 USD/bbl in January 2015. from $12 USD/bbl at the The spread between WTI and Brent futures is also getting smaller, decreasing by over 80% over by and Brent futures is also getting smaller, decreasing The spread between WTI six-year low on Friday, January 23, 2015, at $50 USD/bbl and $48 USD/bbl, respectively. respectively. 23, 2015, at $50 USD/bbl and $48 USD/bbl, six-year low on Friday, January have finally found its bottom and should be on its way back up. Both Brent and WTI fell to a fell and WTI and should be on its way back up. Both Brent have finally found its bottom The price of oil continues to drop, despite reassurances from OPEC that the oil market may oil market to drop, despite reassurances from OPEC that the The price of oil continues Crude Brent Oil vs. WTI: Contract Prompt-Month (NYMEX) Monthly Market Analysis 62 © Graph created with ZEMA © Graph created
January 2015 down the prices when considering global demand. prices. By keeping the production at the current level, there won’t be enough push to bring there won’t be enough push prices. By keeping the production at the current level, crude petroleum ceiling of 30 million barrels per day rather than cut production to cushion day rather than cut production crude petroleum ceiling of 30 million barrels per Despite plunging oil prices, OPEC defended its November decision to maintain its official decision to maintain its Despite plunging oil prices, OPEC defended its November along with sustained OPEC production, have overlapped with a decrease in global demand. demand. in global production, have overlapped with a decrease along with sustained OPEC Oil has declined rapidly since mid-June, as persistent output growth from the United States, States, the United since mid-June, as persistent output growth from Oil has declined rapidly Brent dropped from $63 USD/bbl to $50 USD/bbl. Brent dropped from $63 in February 2015 dropped from $59 USD/bbl to $48 USD/bbl this month, while the price of the while from $59 USD/bbl to $48 USD/bbl this month, in February 2015 dropped $15 USD/bbl cheaper than forward prices in December 2014. The price of WTI for delivery delivery of WTI for forward prices in December 2014. The price $15 USD/bbl cheaper than to slide, with January 2015’s average forward prices for both Brent and WTI around $10 to $10 around average forward prices for both Brent and WTI to slide, with January 2015’s The prices of crude for delivery over the next two years are falling as the price of oil continues continues of oil over the next two years are falling as the price The prices of crude for delivery Crude Brent Oil vs. WTI: Forward Curve (NYMEX) North American Natural Gas Spot Prices (NYMEX) Monthly Market Analysis
© Graph created with ZEMA
On the New York Mercantile Exchange (NYMEX), prices remained at the consistently low level across Henry Hub, PG&E Citygate, and Chicago Citygate. Northeastern Gas, as represented by Transco Zone 6, was $8.41 USD/bbl as of January 23, 2015, where (EIA) prices rose in anticipation of a blizzard. When compared to the first 23 days of December 2014, the average prices decreased as temperatures warmed and demand declined. Prices fell from $4.20 USD/MMBtu in Chicago to $3.17 USD/MMBtu, from $3.65 USD/MMBtu in Henry Hub to $2.96 USD/MMBtu, and from $3.65 USD/MMBtu in California’s PG&E Citygate to $2.96 USD/MMBtu. Comparing January 2015 prices to last year’s prices, monthly average gas prices decreased in New York’s Z6, Chicago Citygates, Henry Hub, and PG&E by 27%, 27%, 32%, and 28%, respectively. In the first three weeks of January 2015, Transco Zone 6 was the most volatile hub with prices ranging from $6.4 USD/MMBtu on January 12 to $8.5 USD/MMBtu on January 23.
January 2015 63 Monthly Market Analysis 64 © Graph created with ZEMA created © Graph
January 2015 the purple bars show, the spread has a trend of slowly dwindling for the next two years. two spread has a trend of slowly dwindling for the next the purple bars show, the (represented by the purple bar) will average at $0.23 USD/MMbtu for the next 12 months. As months. next 12 bar) will average at $0.23 USD/MMbtu for the (represented by the purple Data from NYMEX suggests the spread between January 2015 and January 2016 contracts contracts 2016 the spread between January 2015 and January Data from NYMEX suggests compared to December 2014. (EIA) compared to December futures for the next 12 delivery periods traded at almost 20 to 30 cents lower this month month this periods traded at almost 20 to 30 cents lower futures for the next 12 delivery $3.52 USD/MMBtu this winter and $3.44 USD/MMBtu in 2015, Henry Hub natural gas gas natural winter and $3.44 USD/MMBtu in 2015, Henry Hub $3.52 USD/MMBtu this In line with EIA’s short-term forecast that Henry Hub natural gas prices would be around be around forecast that Henry Hub natural gas prices would In line with EIA’s short-term HenryForward Gas Natural Hub Curve (NYMEX) Monthly Market Analysis 65 © Graph created with ZEMA © Graph created with ZEMA © Graph created
January 2015 ranging from $6.4 USD/MMBtu on January 12 to $8.5 USD/MMBtu on January 23. $8.5 USD/MMBtu on January ranging from $6.4 USD/MMBtu on January 12 to the first three weeks of January 2015, Transco Zone 6 was the most volatile hub with prices 6 was the most volatile hub with the first three weeks of January 2015, Transco Zone Z6, Chicago Citygates, Henry Hub, and PG&E by 27%, 27%, 32%, and 28%, respectively. In 27%, 27%, 32%, and 28%, respectively. Z6, Chicago Citygates, Henry Hub, and PG&E by January 2015 prices to last year’s prices, monthly average gas prices decreased in New York’s average gas prices decreased January 2015 prices to last year’s prices, monthly from $3.65 USD/MMBtu in California’s PG&E Citygate to $2.96 USD/MMBtu. Comparing to $2.96 USD/MMBtu. Comparing from $3.65 USD/MMBtu in California’s PG&E Citygate to $3.17 USD/MMBtu, from $3.65 USD/MMBtu in Henry Hub to $2.96 USD/MMBtu, and USD/MMBtu, $3.65 USD/MMBtu in Henry Hub to $2.96 to $3.17 USD/MMBtu, from temperatures warmed and demand declined. Prices fell from $4.20 USD/MMBtu in Chicago in Chicago demand declined. Prices fell from $4.20 USD/MMBtu temperatures warmed and When compared to the first 23 days of December 2014, the average prices decreased as decreased 23 days of December 2014, the average prices When compared to the first anticipation of a blizzard. Transco Zone 6, was $8.41 USD/bbl as of January 23, 2015, where (EIA) prices rose in rose prices USD/bbl as of January 23, 2015, where (EIA) Transco Zone 6, was $8.41 across Henry Hub, PG&E Citygate, and Chicago Citygate. Northeastern Gas, as represented by Citygate, and Chicago Citygate. Northeastern Gas, across Henry Hub, PG&E On the New York Mercantile Exchange (NYMEX), prices remained at the consistently low level low Exchange (NYMEX), prices remained at the consistently On the New York Mercantile Actual Weather (Accuweather) Actual Weather Monthly Market Analysis 66 © Graph created with ZEMA created © Graph
January 2015 January 20 could be responsible for the spike in prices compared to the other observed cities. other observed for the spike in prices compared to the January 20 could be responsible the month. A sharp decrease in temperature in New York and Chicago between January 6 and January in temperature in New York and Chicago between the month. A sharp decrease month to $76.33 USD/MWh on January 23, with prices peaking at $83.64 in the middle of middle in the on January 23, with prices peaking at $83.64 month to $76.33 USD/MWh January 23, NYISO Zone F peak power rose from $41.6 USD/MWh at the beginning of the of beginning F peak power rose from $41.6 USD/MWh at the January 23, NYISO Zone dropped from $30.27 USD/MWh at the beginning of the month to $28.24 USD/MWh on on USD/MWh at the beginning of the month to $28.24 dropped from $30.27 USD/MWh Eastern power prices rose as the temperature dropped. While ERCOT North prices have have prices as the temperature dropped. While ERCOT North Eastern power prices rose North 345 kV and SP15, with the exception of NYISO, as represented by Zone A prices. prices. Zone A with the exception of NYISO, as represented by North 345 kV and SP15, On the ICE, day-ahead peak electricity prices have remained flat in January 2015 in ERCOT in ERCOT 2015 electricity prices have remained flat in January On the ICE, day-ahead peak Electricity:Prices Day-Ahead (ICE) In Depth 67 By Aiman El-Ramly By
Growth and Decline Dateline JanuaryDateline 2015: The Perilous Plummet
Boom and Bust, War and Peace, and Peace, Boom and Bust, War The Ages Seven of Oil: perilous plummet from a high of $100.52 just six months ago. If you ask a Goldman Sachs months ago. If you ask a Goldman perilous plummet from a high of $100.52 just six
The week of January 26, 2015, saw the price of a barrel of oil drop below $45. It has been a barrel of oil drop below $45. It The week of January 26, 2015, saw the price of a question 17 years ago in 1998, they may have had the same negative sentiment: “The price the same negative sentiment: question 17 years ago in 1998, they may have had of oil is going down, and it is going to stay that way for a while. So just you tighten your belt!” for a while. So just you tighten of oil is going down, and it is going to stay that way
Funny thing – if you had asked a trader at Goldman Sachs or an Iranian oil minister the same Sachs or an Iranian oil minister Funny thing – if you had asked a trader at Goldman an Iranian oil minister, he may tell you the industry might endure a further slump toward $25. might endure a further slump an Iranian oil minister, he may tell you the industry trader, they may tell you the price will probably continue to decline to as low as $30. If you ask to decline to as low as $30. trader, they may tell you the price will probably continue January 2015 Part One of Two of One Part In Depth 68
© Graph created with ZEMA
2008-2015: All Fracked Up 1994 -2008: Deregulation, Speculation, Manipulation, and Detonation 1994 -2008: Deregulation, Speculation, Manipulation, 1973-1994: The Middle East Shrugs its Shackles 1921-1973: Texas Oil Boom in the Gusher Age 1911-1921: A Pax on Arabia 1870-1911: Rockefeller Creates the Multinational Oil Standard 1870-1911: Rockefeller 1859-1870: Illumination Births an Industry 1859-1870: Illumination
January 2015 Figure 1: US oil price fluctuations throughout the Seven Ages of Oil (1859-2015) Figure 1: US oil price fluctuations throughout the Seven Ages of 7. 6. 5. 4. 3. 2. 1. attempt to discern some measure of commonality or predictability. attempt to discern some stakes endeavor not fit for the faint of heart. Let us then describe the seven ages of oil in an of oil ages the faint of heart. Let us then describe the seven stakes endeavor not fit for 2008, only to fall once again below $40 by the end of the year. Clearly, oil trading is a high is a high trading below $40 by the end of the year. Clearly, oil 2008, only to fall once again near all-time low in 1998 at just over $17 before reaching an all-time high of $140 in June in June of $140 at just over $17 before reaching an all-time high near all-time low in 1998 a high of $110 in 1979 to less than $25 in 1994. Similarly, oil prices reached an astonishing astonishing an less than $25 in 1994. Similarly, oil prices reached a high of $110 in 1979 to drop over the past six months. Or, it can be more gradual as with the multi-year decline from decline Or, it can be more gradual as with the multi-year drop over the past six months. descents can be extremely dramatic in the short term, as demonstrated by the current 55% the current dramatic in the short term, as demonstrated by descents can be extremely (all prices adjusted for inflation to 2014 dollars). These price climbs and subsequent subsequent to 2014 dollars). These price climbs and (all prices adjusted for inflation growth followed by periods of accumulated average price decline of greater than 30% 30% than of accumulated average price decline of greater growth followed by periods For clarity, we will define the “seven ages of oil” as those periods in time that saw oil price in time that saw of oil” as those periods will define the “seven ages For clarity, we The Ages Seven
If we pinpoint the beginning of the commercial oil industry as Edwin Drake’s as Edwin oil industry the commercial of the beginning If we pinpoint Boom GoesBoom the Machine-Drilled Well always driven the booms and busts of the oil industry. the booms and busts of always driven US Civil War. Indeed, technical innovation, commercial interests, geo-politics, and war have geo-politics, and commercial interests, Indeed, technical innovation, US Civil War. the first major boom, soon to be followed by the first major shock a few years later due to the a few years later by the first major shock boom, soon to be followed the first major oil prices have always known dramatic growth and decline. Mr. Drake did indeed touch off did indeed Mr. Drake and decline. growth known dramatic have always oil prices 1859 machine-drilled well near Titusville, Pennsylvania, then we can say with confidence that that say with confidence then we can Titusville, Pennsylvania, well near machine-drilled 1859 In Depth 69
© Graph created with ZEMA © Graph created January 2015 US federal expenditures were $1 million a week. By the start of the war it had reached US federal expenditures were $1 million a week. in its the war. The North was more effective was hyper-inflation of up to 9,000% by the end of It should be noted that wars are expensive, resource-hungry endeavors. In the 1850s, endeavors. In the 1850s, It should be noted that wars are expensive, resource-hungry The result and printed new dollars. and the South each taxed its citizens, borrowed money, well north of $120 per barrel the following year. the North a single year. To finance the war, States was the first country to spend $1 billion in from the south, and a larger tax on alcohol (then a competing illuminant), prices escalated a competing illuminant), prices from the south, and a larger tax on alcohol (then United to $3.5 million a day. The $1.5 million a day. By the end of the war it had rocketed commodities generated by the war effort, constriction in oil supply, blockages of turpentine in oil supply, blockages of commodities generated by the war effort, constriction and brought on the first oil shock. Subsequently, with a massive surge in demand for all with a massive surge in demand and brought on the first oil shock. Subsequently, barrels. Correspondingly, prices dropped into the teens before the US Civil War (1962-1964) teens before the US Civil War (1962-1964) barrels. Correspondingly, prices dropped into the In 1860, half a million barrels were produced, quadrupling by 1861 to more than two million by 1861 to more than In 1860, half a million barrels were produced, quadrupling prices dropped nearly tenfold in a single year. In 1859, two thousand barrels were produced. 1859, two thousand barrels were prices dropped nearly tenfold in a single year. In consumer demand for this new luxury product. Production grew sharply in Pennsylvania, and grew sharply in Pennsylvania, consumer demand for this new luxury product. Production barrel – not so surprising given the expensive process of making oil and the high of making oil and the high barrel – not so surprising given the expensive process The first yields of 25 barrels per day fetched a pretty premium at the equivalent of $2,000 per premium at the equivalent of The first yields of 25 barrels per day fetched a pretty for the Seneca Oil Company. owned well in Titusville, Pennsylvania, in the year 1859. The 69-foot (21 m) well was drilled 1859. The 69-foot (21 m) well owned well in Titusville, Pennsylvania, in the year Drake who ushered in the Age of Illumination by oil. Edwin would drill the first commercially first commercially Age of Illumination by oil. Edwin would drill the Drake who ushered in the petroleum or gas from coal, asphalt, coal-tars, and shale. It was another Edwin, not Dietz, but Dietz, Edwin, not asphalt, coal-tars, and shale. It was another petroleum or gas from coal, persecuted whale and sometimes exploited plant resources. There was limited production of production exploited plant resources. There was limited persecuted whale and sometimes introduction of oil were obtained from a variety of natural sources including the much the much from a variety of natural sources including introduction of oil were obtained breathed a short sigh of relief. Illuminants, lubricants, and solvents prior to the commercial to the commercial relief. Illuminants, lubricants, and solvents prior breathed a short sigh of When Robert Edwin Dietz produced a modern kerosene lamp in 1853, thousands of whales of whales produced a modern kerosene lamp in 1853, thousands When Robert Edwin Dietz Figure 2: Percentage fluctuations throughout the Seven Ages of Oil (1859-2015) Figure 2: Percentage fluctuations 1859-1870: Births Illumination an Industry In Depth 70
“…we can say with confidence that growth oil prices have always known dramatic and decline.”
world. Rockefeller ate up his competition until, by the end of the 1870s, Standard Oil was the end of the 1870s, Standard world. Rockefeller ate up his competition until, by men (a.k.a. the Robber Barons) became the richest and most powerful people in the and most powerful people in men (a.k.a. the Robber Barons) became the richest Oil became essentially the one and only oil standard taking over Ohio and then the Oil became essentially the one and only oil standard the oil men and the railroad nation. In the age of cartels and unrestricted monopolies, business. Pivotally, in June of 1870, Rockefeller formed Standard Oil of Ohio. Standard formed Standard Oil of Ohio. Standard business. Pivotally, in June of 1870, Rockefeller expansion in scope as he built business ties and alliances as quickly as he built his oil alliances as quickly as he built his expansion in scope as he built business ties and followed the trains westward to build a national oil business. The next five years saw an business. The next five years saw followed the trains westward to build a national oil He thereafter quickly manoeuvered to take advantage of the post-war posterity and of the post-war posterity and He thereafter quickly manoeuvered to take advantage Clark & Company at auction for $72,500 to establish the firm of Rockefeller & Andrews. the firm of Rockefeller & Andrews. Clark & Company at auction for $72,500 to establish pinnacle of his power he controlled 90% of all US oil. In 1865, Rockefeller bought out oil. In 1865, Rockefeller bought pinnacle of his power he controlled 90% of all US and philanthropist the world has ever known. The first American billionaire, at the first American billionaire, at the and philanthropist the world has ever known. The Born July 8, 1939, John D. Rockefeller is arguably the most notorious business magnate the most notorious business magnate Born July 8, 1939, John D. Rockefeller is arguably 1870-1911: Rockefeller Creates the1870-1911: Oil Standard Multinational Rockefeller Oil can change the shape of the world Oil can change the shape Oil pricing is volatile Oil has no borders Oil and fiscal policy are closely tied Oil and fiscal Oil helps win wars Oil helps win Oil is big business Oil production is technically driven Oil production January 2015 make an entrance on the world stage. make an entrance on the dramatized, and world-changing cycles. The first age was over, and Rockefeller was set to set was cycles. The first age was over, and Rockefeller dramatized, and world-changing would ever face, but also primed the energy industry for what would be ongoing, highly highly primed the energy industry for what would be ongoing, would ever face, but also decade, the fledgling industry witnessed the two largest boom and bust cycles the industry industry the witnessed the two largest boom and bust cycles decade, the fledgling industry and the floor on oil prices dropped away before they started to climb again. In that brief brief In that dropped away before they started to climb again. and the floor on oil prices Naturally, once the North won the war, tensions settled, markets regained their composure, their composure, won the war, tensions settled, markets regained Naturally, once the North 7. 6. 5. 4. 3. 2. 1. established in those early years: in those established While the war and the shock may have been relatively short lived, many things were firmly were things lived, many relatively short have been the shock may the war and While The oil price curve mimics that of inflation during this time. of inflation during mimics that price curve The oil financing, which may have helped them win the war and recover faster in the post-war period. period. post-war in the faster and recover war win the them helped have may which financing, In Depth 71
“Thus the 1880s saw the irrevocable and “Thus the 1880s saw the irrevocable enduring connection among energy finance.” (oil and electricity), geopolitics, and has been more than 100 years, but many of these companies remain, although often companies remain, although often has been more than 100 years, but many of these Sherman Antitrust Act. Standard Oil was broken up into 34 separate new companies. It up into 34 separate new companies. Sherman Antitrust Act. Standard Oil was broken eventually in 1911 the US Supreme Court found Standard Oil to be in violation of the Standard Oil to be in violation of eventually in 1911 the US Supreme Court found became a national talking point and a source of shame. It took another 22 years, but shame. It took another 22 years, became a national talking point and a source of the oil trade in 1879. The scale had tipped as the business practices of Standard Oil business practices of Standard the oil trade in 1879. The scale had tipped as the power to bust railroads and undermine competition finally led to charges of monopolizing finally led to charges of monopolizing power to bust railroads and undermine competition regimes, and not the national or geopolitical status quo. Rockefeller’s use of market quo. Rockefeller’s use of market regimes, and not the national or geopolitical status monopolies, not civil wars, not world wars, not cold wars, not empires, not political wars, not empires, not political monopolies, not civil wars, not world wars, not cold But getting back to Rockefeller, we can observe that nothing lasts forever: not But getting back to Rockefeller, we can observe that January 2015 from kerosene distillation; in other words, it was a cheap way to strip paint. from kerosene distillation; in other words, it was fuel-ravenous consumers. Before the automobile, gasoline was simply a solvent produced fuel-ravenous consumers. Before the automobile, 1908. The oil industry would thereafter ride the coattails of automotive industrialists and their of automotive industrialists 1908. The oil industry would thereafter ride the coattails German’s, Henry Ford and his Ford Motor Company began producing the Model T (Tin Lizzie) in began producing the Model German’s, Henry Ford and his Ford Motor Company automobiles to Europe and fueled them with California oil. Following in the tracks of the of the tracks fueled them with California oil. Following in the automobiles to Europe and recession. In 1886, Karl Benz and Wilhelm Daimler introduced gasoline-powered Benz and Wilhelm Daimler introduced gasoline-powered recession. In 1886, Karl However, automotive pioneers on either side of the Atlantic would soon help them out of this out them on either side of the Atlantic would soon help However, automotive pioneers demand for kerosene as an illuminant, sending the oil industry into a brief recession. recession. an illuminant, sending the oil industry into a brief demand for kerosene as electric industry, Thomas Edison, would invent the light bulb and essentially eliminate eliminate Edison, would invent the light bulb and essentially electric industry, Thomas impact oil prices into the turn of the twentieth century. In 1878, the pivotal pioneer of the of the pioneer turn of the twentieth century. In 1878, the pivotal impact oil prices into the or during the Obama Administration when he dithered in his policies on energy when he dithered in his policies on energy or during the Obama Administration would predictions, two major technological advancements Following Newberry’s ominous concerns (partially arising from the war on Iraq) with tax incentives for alternative energy, energy, from the war on Iraq) with tax incentives for alternative concerns (partially arising the Keystone Pipeline. or in 2005 when George W. Bush’s Energy Policy was developed to combat growing energy to combat growing Policy was developed George W. Bush’s Energy or in 2005 when of approval for clean energy investment, and the ever-pending independence, $800 billion the Oil Crisis, or in 1979 when Jimmy Carter implemented subsidies to derive fuel from corn, to derive fuel Carter implemented subsidies or in 1979 when Jimmy the Oil Crisis, soon dry up. Obviously, this was no truer in 1875 than it was in 1973 when the Nixon declared in 1973 when the Nixon in 1875 than it was Obviously, this was no truer soon dry up. John Strong Newberry, the chief geologist of the state of Ohio, declared that oil supplies would declared that oil supplies of the state of Ohio, Newberry, the chief geologist John Strong the regulator warned of the wolf amongst the flock, the sky falling, the end being nigh), the end being the flock, the sky falling, warned of the wolf amongst the regulator rather it was the US Government. In what would be the oft-called “peak oil” cry of the wolf (as “peak oil” cry of would be the oft-called the US Government. In what rather it was Notably, Rockefeller was not the architect behind the doubling of oil prices in 1875, but prices in 1875, of oil behind the doubling architect was not the Rockefeller Notably, of Standard Oil. of Standard gain market share. And for the most part, prices were in decline for the greater part of the Age of the Age part the greater decline for were in most part, prices And for the share. gain market refining more than 90% of US oil. As the price setter, Rockefeller would even sell at a loss to a loss at sell even would Rockefeller setter, price As the oil. of US 90% than more refining In Depth 72
“…one must keep in mind that oil and industry “…one must keep in mind that oil and are inseparable.” While history may rightly denote the assassination of the Archduke Francis Ferdinand, the of the Archduke Francis Ferdinand, While history may rightly denote the assassination the spark that set the world aflame, heir to the Habsburg throne, on June 28, 1914, as Similarly, the sinking of the the predisposition to war was already well established. Lusitania on May 7, 2015 may have been used as a ruse to draw the United States into a ruse to draw the United States Lusitania on May 7, 2015 may have been used as already financially invested through the war formally. However, the United States was Rothschild’s and the American deals between the financial houses of the French ventures. As noted, the ties Morgan’s as well as myriad other overseas industrialist But social change were well established. among war, commodities, finance, politics, and century, London remained the it is important to note that, by the turn of twentieth industrial excellence would succumb undisputed financier of the world. But soon, British
January 2015 Age of the Pax and World Wars.Age of the Pax and World The stage was unknowingly set for the conflicts that would define the twentieth century as the set for the conflicts that would define the twentieth The stage was unknowingly irrevocable and enduring connection among energy (oil and electricity), geopolitics, and finance. connection among energy (oil and electricity), geopolitics, irrevocable and enduring abounded, scandal was rampant, and politicians were easily corrupted. Thus the 1880s saw the and politicians were easily corrupted. Thus abounded, scandal was rampant, and exciting on the outside; however, on the inside, greed was insidious, ruthless speculators however, on the inside, greed was insidious, ruthless and exciting on the outside; global scale. As Mark Twain so aptly put it, it was the “Gilded Age.” Everything was shiny, new, Everything was shiny, it, it was the “Gilded Age.” As Mark Twain so aptly put global scale. in Europe and of personal wealth. Financiers and businessmen building, and the building Rothschilds of Paris were providing the financing. It was the age of power and dominium on a of power and dominium financing. It was the age Paris were providing the Rothschilds of influence, empire was very little separation between building political Pax. Prior to the war, there fray during the 1880s, introducing pipelines and tankers to the technology mix. Further, the technology mix. Further, and tankers to the 1880s, introducing pipelines fray during the practice ofpastime of Empire building and put in place hegemonic would end the European it did not mean that the rest of the world was neutered. production was coming from Pennsylvania in the 1880s, Russia and Asia notably joined the and Asia notably joined in the 1880s, Russia coming from Pennsylvania production was I War of World the staging for world war. Eventually, the culmination financiers – we approach monopoly and aspirations were corralled,wealth by any means. Just because one oil magnate’s quintupled his wealth, as the assets broken up were worth significantly more than under the more than under up were worth significantly wealth, as the assets broken quintupled his oil Although 85% of global power for wealth. essentially traded his monopoly monopoly. He 1911-1921 – A Pax on You of industrialists and the Robber Baron, of larger than life magnates, Exiting the Gilded Age – of power, national empires, and personalAmerica were constantly conniving to establish their There were other important developments in the Age of Standard Oil. Rockefeller actually Rockefeller Oil. the Age of Standard in developments other important There were and Chevron have remained largely the same. the same. remained largely have and Chevron Esso became Exxon and is now part of ExxonMobil. Mobil is now part of ExxonMobil. Pennzoil of ExxonMobil. is now part Mobil part of ExxonMobil. and is now Exxon Esso became transformed. Continental Oil became Conoco / ConocoPhillips. Amoco became part of BP. of BP. part became Amoco / ConocoPhillips. Conoco became Oil Continental transformed. In Depth
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“The Wild West was quickly transformed, as the “The Wild West was quickly transformed, States advent of Texas oil pushed the United ahead of the Russian Empire as the world’s largest oil producer.” half a century, until conflict in the Middle East started to come to head and Pax began half a century, until conflict in the Middle East started post war continued to push prices upwards; but oil prices basically stabilized for almost prices basically stabilized for post war continued to push prices upwards; but oil Iraq’s fear of invasion by the Turks to force the complete concession of all rights in the Iraq concession of all rights in Iraq’s fear of invasion by the Turks to force the complete oil supply friction and uncertainty around Arab Oil in their quest for global dominance. The we have it, the Age of the Pax – peace through might. By 1923, Britain had leveraged we have it, the Age of the Pax – peace through might. in and the United States neck-deep western hegemony would prevail with primarily Britain Arab land and control the Middle East – the so called Sykes-Picot Agreement. And here Sykes-Picot Agreement. And Arab land and control the Middle East – the so called the For the balance of the century, national sentiments opposing absolute concession. Petroleum Company (the former Turkish Petroleum Company) for 75 years, despite Company) for 75 years, despite Petroleum Company (the former Turkish Petroleum to unravel. January 2015 concessionary rights to oil. As far as Britain was concerned, it and France would divide up the it and France would divide concessionary rights to oil. As far as Britain was concerned, men. At the time, the British controlled the Turkish Petroleum Company and thus held some Petroleum Company and thus men. At the time, the British controlled the Turkish ruling Ottoman Turks. The desire was to create a single, unified Arab state from Syria to Ye- single, unified Arab state from Syria ruling Ottoman Turks. The desire was to create a Sherif Hussein bin Ali incited revolt to gain independence for the various Arab states from the from Arab states revolt to gain independence for the various Sherif Hussein bin Ali incited An underappreciated outcome of World War I was the subsequent Arab Revolt (1916-1918). (1916-1918). of World War I was the subsequent Arab Revolt An underappreciated outcome even in the sequel in 1939. even in the sequel in 1939. epic, the resolution for ultimate global control would not be resolved at the war’s end, nor end, war’s global control would not be resolved at the epic, the resolution for ultimate Because, in the end, the war was about access to commodities. Although World War I was War World war was about access to commodities. Although Because, in the end, the blame any country, you could certainly blame any number of financiers or industrialists. industrialists. certainly blame any number of financiers or blame any country, you could Austria-Hungary, blame Russia, blame Germany, and blame Britain. And if you decide not to if you decide Russia, blame Germany, and blame Britain. And Austria-Hungary, blame Imperial Germany. Who really started World War I is immaterial; blame Serbia, blame blame really started World War I is immaterial; blame Serbia, Imperial Germany. Who to encircle Germany in order to restrict its movements and incite political unrest throughout throughout unrest to restrict its movements and incite political to encircle Germany in order from coal and was desperate for fuel. He thus formed secret alliances with France and Russia and France for fuel. He thus formed secret alliances with from coal and was desperate Persian oil had been conceded to them. Churchill had converted the English naval fleet to oil fleet naval to them. Churchill had converted the English Persian oil had been conceded had discovered in Mosul, Kirkuk, and Basra. Britain, however, was under the assumption that was under the assumption Basra. Britain, however, in Mosul, Kirkuk, and had discovered stepped into what would later become Iraq, Germany had laid claim to the oil their geologists claim to the oil their Iraq, Germany had laid what would later become stepped into Bank that financed the Berlin-to-Baghdad railway project. Yes, long before the United States long before the United railway project. Yes, the Berlin-to-Baghdad Bank that financed resources and German industrialists and financiers made it so. Indeed, it was Deutsche Indeed, it was Deutsche and financiers made it so. German industrialists resources and Of course, one must keep in mind that oil and industry are inseparable. Germany needed Germany oil and industry are inseparable. must keep in mind that Of course, one palpable. Germany had to be controlled at any cost! had to be controlled palpable. Germany France, Russia, and the United States) combined. The envy and fear of German might was might of German envy and fear The States) combined. the United Russia, and France, force, achieving more Nobel Prizes in science than their soon-to-be adversaries in war (Britain, war (Britain, in adversaries soon-to-be than their in science Nobel Prizes achieving more force, in 1871). During its brief 47 years, Imperial Germany was an industrial and technological and technological an industrial Germany was Imperial brief 47 years, During its in 1871). to the natural resource strength of America and, more importantly, Imperial Germany (unified (unified Germany Imperial importantly, more and, America of strength resource natural to the In Depth 74
people out of work, banks failing, savings evaporated, and subsequent hyperinflation, the and subsequent hyperinflation, people out of work, banks failing, savings evaporated, coming due, and the market for exports shrivelling, Germany was in desperate straits. With Germany was in desperate straits. coming due, and the market for exports shrivelling, markets worldwide into a tailspin with disastrous effects. With huge debt, American loans effects. With huge debt, American markets worldwide into a tailspin with disastrous when the stock market collapsed on Wall Street on October 29, 1929, it sent financial on October 29, 1929, it sent financial when the stock market collapsed on Wall Street totally demilitarized. It was not enough that they were faced with insurmountable debt, but were faced with insurmountable totally demilitarized. It was not enough that they imposed on them crippling financial sanctions and a disembodied empire. Germany was a disembodied empire. Germany imposed on them crippling financial sanctions and oppression. Found guilty alongside Austria-Hungary for World War I, the wrath of the victors for World War I, the wrath of oppression. Found guilty alongside Austria-Hungary But it was not only the Arabs who were feeling slighted. Germany also felt the weight of Germany also felt the weight But it was not only the Arabs who were feeling slighted. rights, trying to manage the baffling effects of Pax. rights, trying to manage the baffling effects of Pax. Middle East would never truly find its footing, fighting amongst each other over borders and amongst each other over borders Middle East would never truly find its footing, fighting upfront payment of $250,000 by Standard Oil and a royalty of about $1.60 per barrel. The a royalty of about $1.60 per barrel. upfront payment of $250,000 by Standard Oil and staggering was Saudi Arabia’s King Abdulaziz’ bargain basement sale of oil rights for an basement sale of oil rights staggering was Saudi Arabia’s King Abdulaziz’ bargain the president of Anglo-Persia threatened to abandon the negotiations. Perhaps even more the negotiations. Perhaps even the president of Anglo-Persia threatened to abandon infrastructure. Although Britain toyed with the idea of war, a compromise was reached after of war, a compromise was reached infrastructure. Although Britain toyed with the idea November 1932. He rightly wanted a share of the profits to support building his country’s profits to support building his country’s November 1932. He rightly wanted a share of the The Shaw in Persia abruptly cancelled Britain’s prized Anglo-Persian oil concessions in Anglo-Persian oil concessions The Shaw in Persia abruptly cancelled Britain’s prized and establish independence. January 2015 Middle East was still in significant turmoil as they tried to throw off their western oppressors tried to throw off their western oppressors Middle East was still in significant turmoil as they acquisitions were rampant, locally and globally. It was a period of global unrest, and the It was a period of global unrest, acquisitions were rampant, locally and globally. Oil of old, the Standard Oil of post-1911 did exist within an oligarchic regime. Takeovers and within an oligarchic regime. Takeovers Oil of old, the Standard Oil of post-1911 did exist for overproduction and illegal production. Although there was not the monopolistic Standard Standard production. Although there was not the monopolistic for overproduction and illegal low of around $12. Globally, other nations were upset with the United States, blaming them blaming other nations were upset with the United States, low of around $12. Globally, Depression. With growing Texas supply and a decline in prices, the price per barrel reached a reached per barrel Texas supply and a decline in prices, the price Depression. With growing in any other period. That said, there was a momentary squeeze on oil in 1933 during the Great during said, there was a momentary squeeze on oil in 1933 in any other period. That Actually, oil prices rode out the Great Depression and WWII with considerably less drama than drama less the Great Depression and WWII with considerably Actually, oil prices rode out 1940 as the undeniable leader in the global oil economy – just in time for World War II. War World leader in the global oil economy – just in time for 1940 as the undeniable of the Russian Empire as the world’s largest oil producer. The state came fully into its own by its fully into the world’s largest oil producer. The state came of the Russian Empire as Wild West was quickly transformed as the advent of Texas oil pushed the United States ahead States United as the advent of Texas oil pushed the Wild West was quickly transformed it was the world’s most productive well. Texas and the world were never the same again. The again. same well. Texas and the world were never the it was the world’s most productive was in production. The pivotal event, though, was the Spindletop strike in 1901. At that time, At that 1901. event, though, was the Spindletop strike in was in production. The pivotal Company discovered oil by accident while looking for water. By 1898, the Corsicana oilfield Corsicana by accident while looking for water. By 1898, the Company discovered oil In 1894, in Navarro County near Corsicana in East Texas, the American Well and Prospecting Prospecting and near Corsicana in East Texas, the American Well In 1894, in Navarro County Iraq War (a.k.a. the War on Terror). Iraq War (a.k.a. Gradually, the Pax Britainica would succumb to Pax Americana until the falsely perpetrated until the falsely perpetrated to Pax Americana Pax Britainica would succumb Gradually, the called Texas their home state and who would take the United States back into Iraq. States back into Iraq. would take the United their home state and who called Texas oil industry. In fact, the United States would later produce father and son US presidents who and son US presidents would later produce father In fact, the United States oil industry. The power and might of the United States, as well as its global aims, developed alongside the aims, developed alongside as well as its global might of the United States, The power and the energy capital of the world. As the state grew in wealth, so did its stature and influence. influence. stature and so did its grew in wealth, As the state of the world. capital the energy industry matured in Texas. Indeed, Texas, and specifically Houston, would grow to become to would grow Houston, specifically Texas, and Texas. Indeed, matured in industry In the meantime, the Texas cowboys would have their day. It is not unfair to say that the oil that unfair to say It is not have their day. would Texas cowboys meantime, the In the 1921-1973 – Texas Oil Boom in the in Boom Oil Age Gusher – Texas 1921-1973 In Depth 75
“The armaments and nuclear bombs served as “The armaments and nuclear bombs came at a a deterrent to another World War, but heavy economic cost.” nations and established the gold standard, due to requirements to tie currency to gold. requirements to tie currency to nations and established the gold standard, due to Woods System was put in place to manage the financial relations amongst the first-world relations amongst the first-world Woods System was put in place to manage the financial the State and the major integrated oil companies were in charge. In July 1944, the Bretton the State and the major integrated oil companies control by the United States of most of the world’s oil continued largely unabated. Both oil continued largely unabated. control by the United States of most of the world’s This extended period of time was also called the “long boom.” Until 1973, the hegemonic “long boom.” Until 1973, the hegemonic This extended period of time was also called the growth. It was the post-war golden age of capitalism that would end in crisis in the 1970s. that would end in crisis in the growth. It was the post-war golden age of capitalism The United States exited the war liberalized and empowered, entering a period of fabulous entering a period of The United States exited the war liberalized and empowered, plants and put people to work building physical facilities as well as in the war effort. as well as in the war effort. plants and put people to work building physical facilities banking; but critically, he literally energized the nation by building massive electricity by building massive electricity banking; but critically, he literally energized the nation depression through “relief, recovery, and reform.” He changed fiscal policy and reformed He changed fiscal policy and reformed depression through “relief, recovery, and reform.” programs enacted between 1933 and 1938 designed to extract the United States from to extract the United States programs enacted between 1933 and 1938 designed Franklin D. Roosevelt to develop the New Deal. The New Deal was a series of domestic New Deal was a series of domestic Franklin D. Roosevelt to develop the New Deal. The January 2015 the war in a composed state. Pivotally, the Great Depression led US President Pivotally, the Great Depression led US President the war in a composed state. the Texas boom. This basically meant that, from an oil standpoint, the United States entered entered States meant that, from an oil standpoint, the United the Texas boom. This basically thus eliminating most of the wild price swings that were common during the earlier years of years earlier the wild price swings that were common during the thus eliminating most of had taken regulatory control of the Texas oil industry and managed to stabilize oil production production oil of the Texas oil industry and managed to stabilize had taken regulatory control Going back to Texas, despite the war raging on, by the 1940s, the Texas Railroad Commission Commission Railroad the war raging on, by the 1940s, the Texas Going back to Texas, despite the world’s superpower. the world’s superpower. energy controls the world, an atomic age had been ushered in, and America was undoubtedly undoubtedly was an atomic age had been ushered in, and America energy controls the world, staggering from two atomic blasts, three things were firmly established: he who controls the who controls blasts, three things were firmly established: he staggering from two atomic country was spared. No oil, no war. At the close of World War II, with Hitler defeated and Japan and defeated oil, no war. At the close of World War II, with Hitler country was spared. No a strategic bombing campaign to target facilities supplying oil – no target in any enemy to target facilities supplying oil – no target a strategic bombing campaign machine was identified before the conflict. The British RAF and American USAAF conducted conducted USAAF the conflict. The British RAF and American machine was identified before But of course, this is the story of oil. Germany’s heavy reliance on oil to power its immense war immense its story of oil. Germany’s heavy reliance on oil to power But of course, this is the Britain and France declared war on Germany but left their ally Poland to fall. but left their ally declared war on Germany Britain and France on September 1, 1939, that set the world to full-scale war once again. On September 3, again. On September world to full-scale war once 1, 1939, that set the on September Austria, and the invasion of Czechoslovakia. However, it was the German invasion of Poland the German invasion However, it was the invasion of Czechoslovakia. Austria, and Much of the 1930s saw war and strife in Europe: the Spanish Civil War, the annexation of Civil War, the annexation in Europe: the Spanish 1930s saw war and strife Much of the massive armed force. massive armed job. He seized the opportunity, appealed to his disenfranchised countrymen, and built a and countrymen, his disenfranchised appealed to opportunity, seized the job. He and changes need to be made, societies go to war. It seemed that Hitler was the man for the man for the Hitler was the that to war. It seemed societies go to be made, need and changes world turned to Fascism to save their economies. As history has shown, when times are tough are tough when times has shown, As history their economies. to save to Fascism world turned German people were cast into ruin. The Germans were not alone, and many people across the the across people many and alone, not were Germans The ruin. cast into were people German In Depth 76
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ZEMA component is modular and scalable, giving clients greater the Energy the clock. It has been ranked first in The solution is easy to use and backed by ZE’s support team around software five years in a row. In Energy Risk’s annual Risk Awards “Data Management House of the Year” category for System first in the “Preferred System,” “Ease of survey and rankings, it is also consistently rated by end users as Integration,” and “Customer Service” categories. About ZE PowerGroup Inc.: advanced combines energy industry expertise with ZE is an experienced software and strategic consulting firm that and a sophisticated enterprise data management software development capabilities. ZE is the developer of ZEMA, energy and commodities markets. analysis solution built to meet the challenges of participants in January 2015 celebrate too soon … only be purchased in US dollars. Problem solved – everyone wanted US dollars. But let’s not But let’s dollars. Problem solved – everyone wanted US dollars. only be purchased in US United States as its ready market for oil, Nixon derived an agreement whereby Saudi oil could Saudi market for oil, Nixon derived an agreement whereby United States as its ready he simply swapped gold for black gold. Recognizing that Saudi Arabia would love to have the to have love for black gold. Recognizing that Saudi Arabia would he simply swapped gold the world was more hungry for oil now than ever (remember the cries of wolf about oil supply), oil about for oil now than ever (remember the cries of wolf the world was more hungry Cold War. Still, he worried about the long-term strength of the US dollar. Brilliantly, recognizing Brilliantly, dollar. US the of strength long-term the about worried he Still, War. Cold currency. Nixon was prepared to print as much money as necessary to cover the costs of the to print as much money as necessary to cover currency. Nixon was prepared consider the future of oil. disconnected the link between the dollar and gold, making the US dollar a fully floating fiat a fully floating the dollar and gold, making the US dollar disconnected the link between and of oil, draw some conclusions, In part two, we will discuss the three remaining ages sent the world into a tailspin and was to be followed soon by the OPEC shock. Nixon Nixon and was to be followed soon by the OPEC shock. sent the world into a tailspin be continued. To when Nixon unilaterally severed the agreement, leaving the world to flounder. The Nixon shock Nixon The the agreement, leaving the world to flounder. when Nixon unilaterally severed As previously mentioned, nothing lasts forever. The Bretton Woods system collapsed in 1971 system collapsed forever. The Bretton Woods mentioned, nothing lasts As previously the 1970s. where it wanted, when it wanted, with virtual impunity. Pax Americana was at its height prior to was at its virtual impunity. Pax Americana when it wanted, with where it wanted, United States was the go-to trade partner for all commodities. The United States intervened The United States for all commodities. was the go-to trade partner United States markets gave the United States ultimate freedom in deployment and foreign relations. The and foreign relations. freedom in deployment the United States ultimate markets gave economic cost. The benefits, though, were highly attractive. Being a central player in global a central player were highly attractive. Being The benefits, though, economic cost. and nuclear bombs served as a deterrent to another World War, but came at a heavy heavy came at a War, but another World a deterrent to served as bombs and nuclear The Cold War served to bolster the US industrial complex and war machine. The armaments armaments The and war machine. complex the US industrial to bolster War served The Cold War was largely bloodless, save for excursions into Korea and Vietnam starting from 1950. from starting and Vietnam into Korea for excursions save largely bloodless, War was The United States was engaged in a cold war almost before World War II was over. The Cold The Cold over. II was War World before almost war a cold in engaged was States United The