Axpo Netherlands’ Post

If you are wondering how #Axpo brings competitive pricing and liquidity to #natgas and #power markets, read this interview, where Axpo executives from across Europe discuss recent challenges in different regions.

⛵ Tough times build even greater experts. ✒ Last year some normality returned to European #energymarkets after the extremes of 2022. But, with bursts of volatility and insufficient liquidity, they remained challenging for suppliers and consumers alike, writes Risk.net 💬 In this extensive Energy Risk interview, #Axpo executives from across Europe discuss recent challenges in different regions. Our experts Domenico Franceschino, Ignacio Soneira, Steven McCarthy, Michiel Rutgers, Simone Rodolfi and Manuel Previato reflect on specific market issues, stand-out deals and regional business performance. 💡 And above all, the innovative and bespoke ways in which Axpo was able to support clients in the toughest of times. 🔗 If you were wondering how we bring competitive pricing and liquidity #natgas and #power markets, read on! ➡ https://lnkd.in/eAPm-jHj

⛵ Tough times build even greater experts. ✒ Last year some normality returned to European #energymarkets after the extremes of 2022. But, with bursts of volatility and insufficient liquidity, they remained challenging for suppliers and consumers alike, writes Risk.net 🗨 In this extensive Energy Risk interview, #Axpo executives from across Europe discuss recent challenges in different regions. Our experts Domenico Franceschino, Ignacio Soneira, Steven McCarthy, Michiel Rutgers, Simone Rodolfi and Manuel Previato reflect on specific market issues, stand-out deals and regional business performance. 💡 And above all, the innovative and bespoke ways in which Axpo was able to support clients in the toughest of times. 🔗 If you were wondering how we bring competitive pricing and liquidity #natgas and #power markets, read on! ➡ https://lnkd.in/eAPm-jHj

🗨 "We spend a considerable amount of time with smaller clients that require more hand‑holding, and that’s one of the things that I’m proud of." says #Axpo UK Managing Director Steven McCarthy. ⛵ We've emerged stronger from challenging times. While 2022 was turbulent for the European #EnergyMarkets, 2023 has seen increased stability. However, Risk.net notes that scarce liquidity and sudden volatility continued to challenge both consumers and suppliers. 📈 In this in-depth Energy Risk interview, Steve discusses the UK’s 2023 market challenges and the team's top strategies for client support, including robust credit, liquidity, and competitive pricing in the #NatGas and #power markets. 💡 🔗 Discover Steve’s key insights and what’s next for us: 🌟 https://lnkd.in/eAPm-jHj #EnergyTrading #AxpoUK #EnergyNews #Commodities

⛵ Tough times build even greater experts. ✒ Last year some normality returned to European #energymarkets after the extremes of 2022. But, with bursts of volatility and insufficient liquidity, they remained challenging for suppliers and consumers alike, writes Risk.net 🗨 In this extensive Energy Risk interview, #Axpo executives from across Europe discuss recent challenges in different regions. Our experts Domenico Franceschino, Ignacio Soneira, Steven McCarthy, Michiel Rutgers, Simone Rodolfi and Manuel Previato reflect on specific market issues, stand-out deals and regional business performance. 💡 And above all, the innovative and bespoke ways in which Axpo Group was able to support clients in the toughest of times. 🔗 If you were wondering how we bring competitive pricing and liquidity #natgas and #power markets, read on! ➡ https://lnkd.in/eAPm-jHj

⚠️ The European Commission will assess the possible introduction of regional Virtual Trading Hubs (VTHs) for cross-zonal hedging, and the moving from zone-to-zone to zone-to-hub long-term transmission rights (LTTRs) to improve the market participants' ability to hedge price risks in the internal #electricity market - but are these measures feasible?    Together with Energy Traders Europe and Europex - Association of European Energy Exchanges, we advocated for a cautious approach and the need for a thorough data-driven evaluation before any changes are implemented.   Compass Lexecon's study provides a detailed quantitative analysis focusing on transaction costs and basis risks in the CORE region and its extension to Iberia and Italy. It shows that:   ▪️ The current system across the CORE region where market participants hedge using existing physical hubs like those in Germany and Hungary is generally more effective for hedging than a virtual hub setup.    ▪️ If implemented, VTHs could fragment forward market liquidity, leading to lower efficiency on the market and higher costs, which may eventually be passed on to consumers.   ▪️ The introduction of zone-to-hub LTTRs does not seem sufficient to counterbalance less efficient hedging on VTHs.    Download the study to learn more: https://lnkd.in/eTXnqY9Q   #energy #electricity #MarketDesign #EMD #hedging

⚠️ Important insights from Compass Lexecon's study highlight that Virtual Hubs in CORE region could compromise hedging effectiveness relative to proxy-hedging on existing hubs, potentially increasing both risk and hedging costs. 📈 A careful, evidence-based approach is essential for any market changes. Data-driven decisions are crucial to safeguarding effective hedging and liquidity in the European electricity market. 👉 Read more in the study below.

"Investors continue to feel positive about commodities, particularly right now with natural gas and AI driving demand. The second big theme would be M&A. In the last month we’ve seen an additional USD $10 billion+ M&A transactions in the space." Tim Perry, Vice Chairman, RBC Capital Markets Read more in this article published by RBC Capital Markets https://lnkd.in/g9H_2nGS #energy #manda #usmarket #demand

⚠️ The European Commission will assess the possible introduction of regional Virtual Trading Hubs (VTHs) for cross-zonal hedging, and the moving from zone-to-zone to zone-to-hub long-term transmission rights (LTTRs) to improve the market participants' ability to hedge price risks in the internal #electricity market - but are these measures feasible?    Together with Eurelectric and Europex - Association of European Energy Exchanges, we advocated for a cautious approach and the need for a thorough data-driven evaluation before any changes are implemented.   Compass Lexecon's study provides a detailed quantitative analysis focusing on transaction costs and basis risks in the CORE region and its extension to Iberia and Italy. It shows that:   ▪️ The current system across the CORE region where market participants hedge using existing physical hubs like those in Germany and Hungary is generally more effective for hedging than a virtual hub setup.    ▪️ If implemented, VTHs could fragment forward market liquidity, leading to lower efficiency on the market and higher costs, which may eventually be passed on to consumers.   ▪️ The introduction of zone-to-hub LTTRs does not seem sufficient to counterbalance less efficient hedging on VTHs.    Download the study to learn more: https://lnkd.in/ezdDWS8M   #energy #electricity #MarketDesign #EMD #hedging

𝐒𝐞𝐯𝐞𝐧 𝐥𝐞𝐬𝐬𝐨𝐧𝐬 𝐟𝐫𝐨𝐦 𝐚 𝐰𝐢𝐥𝐝 𝐲𝐞𝐚𝐫 𝐢𝐧 𝐄𝐔 𝐞𝐧𝐞𝐫𝐠𝐲 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 For Europe’s gas markets, 2024 was less about the molecules in the pipeline and more about the emotions on the trading floor — fear, greed, and a stubborn belief in worst-case scenarios. Overview: 😱 2024 was a geopolitical thriller, with fresh plot twists daily ⁉️ An information vacuum was filled by rampant speculation, leaving markets struggling to price risk appropriately 🙈 Beyond fundamentals, 2024 taught us the energy crisis won’t end until markets stop believing in it This special end-of-year post relays the most pertinent takeaways from a brutally unpredictable 2024, and casts a forward eye to the major factors likely to shape market events over the coming 12 months. Read more 👉 https://lnkd.in/e47TqQ-4 #energy #markets #natgas #naturalgas #LNG #Europe #Russia #Ukraine