Fifth IEA-IEF-OPEC workshop on the interactions between physical and financial markets

The Secretary General of the International Energy Forum, Dr Aldo Flores-Quiroga, participated in the Fifth Joint IEA-IEF-OPEC Workshop on the interlinkages between Physical and Financial Energy Markets (OPEC, Vienna, 15 March 2016). The meeting, a feature of the trilateral IEA-IEF-OPEC programme of work, is part of an ongoing series aimed at helping to determine the causes and consequences of high energy market volatility and to identify remedies.

Market turbulence has increased and again sharpened focus on how the interactions between physical and financial energy markets contribute or cushion energy market volatility. The 2010 Cancún Ministerial Declaration called on the IEF (including major producers outside OPEC and major consumers outside IEA) to cooperate in a trilateral work programme with IEA and OPEC to promote confidence among producers and consumers and send strong market signals to help stabilise long-term expectations. Following the oil market turbulence of 2008, four joint IEA-IEF-OPEC workshops on physical and financial interactions took place in a period of relative oil price stability. New demand and supply trends, brought about by investments in conventional and new energy technologies, the impact of longer term economic trends and expectations, as well as the implementation of new energy policy, regulatory and data transparency initiatives reshape energy markets. These developments affect physical - financial energy market interactions and their role in energy market turbulence.

The Fifth Workshop gathered senior level representatives from physical and financial energy market stakeholders, alongside experts from price reporting agencies, regulatory institutions, advisories and academia.

Presentations

Session I: Recent oil market volatility

Session Moderator: David Fyfe, Gunvor Group

• David Fyfe, Gunvor Group
• Paul Horsnell, Standard Chartered
• Kurt Chapman, Mercuria

Session II: Role of financing and hedging in oil market developments

Session Moderator: Harry Tchilinguirian, BNP Paribas

• Harry Tchilinguirian, BNP Paribas
• Hrvoje Ostric, Citygroup
• Trisha Curtis, PetroNerds

Session III: Financial oil market regulation: Avoiding market fragmentation and unintended consequences

Session Moderator: John Kemp, Thompson Reuters

• Paul Willis, Financial Conduct Authority, UK
• Alex McDonald, Wholesale Markets Brokers' Association

Session IV: Review of current and potential Asian oil benchmarks

Session Moderator: Andy Walker, Mitsubishi Corporation International (Europe)

• Chen Bo, President, Unipec
• Eric Aboussouan, Cargill

Previous Workshops

• Fourth IEA-IEF-OPEC Workshop on Physical and Financial Markets
  31 March 2014, Vienna, Austria
  
• Third IEA-IEF-OPEC Workshop on Physical and Financial Markets
  21 March 2013, Vienna, Austria
  
• Second IEA-IEF-OPEC Workshop on Physical and Financial Markets
  29 November 2011, Vienna, Austria
• First IEA-IEF-OPEC Workshop on Physical and Financial Markets
  22-23 November 2010, London, UK