Energy Risk USA: Storms, warm winter, fuel interest in weather derivatives

The perfect storm

The market for weather derivatives has received a boost from the unusual weather that affected North America in the past year, according to experts in a discussion panel on weather risk management at the annual Energy Risk USA conference in Houston, Texas.

Most notably, the extremely mild winter of 2011–12 – which, combined with a boom in shale gas production, caused US natural gas prices to hit their lowest level in a decade – has raised interest in weather derivatives among concerned gas produ

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