The Risks Keep Evolving

As I’m sure you’ve noticed on this page, ComTech is currently conducting a snapshot survey looking at risk and risk management in energy and commodity trading.  We’ve done other risk and risk-related studies over the years, both as ComTech and as our predecessor organization, CommodityPoint. However, in the global commodities markets, change is constant and the risks faced by producers, marketers and traders evolve both in terms of magnitude and scope at seemingly breakneck speed. The changes over the last two years alone have been remarkable – price crashes, cartel agreements to cut production, first (and increasing) LNG exports from the US, growing geopolitical instability, near-constant Chinese economic concerns, Brexit, and certainly, not to be forgotten, the ascendancy of Donald Trump. Not only has the election of President Trump had an almost immediate impact (such as the elimination of federal blockades on the Keystone and Dakota Access pipelines, and the repeal of the methane emissions reporting requirements for natural gas industry), his campaign platform that focused on reducing regulations is still playing out. Though during that campaign he promised to eliminate Dodd-Frank in its entirety, its still unclear as to whether that will come to pass and what the impacts Continue reading The Risks Keep Evolving. This article appeared first on CTRM Center.