Energy Risk Commodity Rankings 2023: adapting to new market dynamics

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Commodity market participants experienced head-spinning change over the past year. Decades-old trade routes were upended and supply chains weakened following Russia’s February 2022 invasion of Ukraine, while Covid-19 lockdowns in China continued to disrupt supply and demand norms.

As oil and gas prices spiralled, markets, particularly in Europe, became subject to higher levels of government and regulatory scrutiny and input. Various schemes to cap retail prices have added to longer term uncertainty in the wholesale markets.

High inflation and rising interest rates also added further risk and increased the focus once again on counterparty credit risk.

The winners of this year’s Commodity Rankings have demonstrated enormous resilience in the face of such uncertainty, remaining reliable and effective in extreme conditions. Not only has carrying out risk management been more essential than ever over the past year, it has also become more difficult. Many tried and tested models have had to be overhauled or abandoned amid such change. Hedging has become more expensive and riskier with ongoing price volatility, resulting in some eye-watering margin calls.

Faced with this level of challenge, many energy producers and consumers turned to banks, large energy firms, brokers and research providers to help steer, execute and shore up their risk-management strategies. The 2023 Commodity Rankings tables show the firms deemed by their clients to have provided the best services during this extremely challenging time.

To see the Commodity Rankings tables in full, please click on the link above.