Cover Story: Energised!Global energy markets hit new heights

Energy prices are at record highs as world demand remains heated. This is the case for energy prices — not only in US dollars, but priced in any major currency. Crude oil has settled above $100 per barrel while export quality thermal coal prices have more than doubled in the last year. Electricity prices are rising as many countries, including major commodity producers, are experiencing electricity shortages because of limited generating capacity. And, energy demand just keeps on growing.

For example, in India, almost half of the one billion population remains without electricity. China and India have less than 15 motor vehicles per 1,000 people on their roads (compared with Russia at 120, Japan at 540, and the US at 765), therefore, with transport the major energy consumer, this can only mean that fuel demand will rise as these two countries, as well as other emerging markets, develop economically. Indeed, energy consumption by emerging markets has risen rapidly over the last decade.

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From Rags to RichesStructured trade finance in the Middle East

It is difficult in any discussion of the commodity output of the Middle East to avoid the impact of the oil business. The role of the Organization of the Petroleum Exporting Countries (OPEC) and the issues surrounding the politics of output in many of the countries in the region often lead to a perception that oil and its derivatives are the sole commodities to emerge from this part of the world. By contrast, in the world of structured trade finance, it is difficult to define the boundaries of such financing. Therefore it is difficult to set out any absolute positions from which to begin a review of the role of structured trade finance and its potential for the Middle East.

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Paper PiratesCommodity trading and shipping frauds

There is a wealth of cases of fraud in the shipping industry, both those that have come before the Courts and those which are anecdotal i.e. people know they go on, but are powerless to prevent them. Fraud in the shipping business has probably been around as long as shipping as a business has been around. The earliest case on record goes back to 360 BC in which a ship owner, in collusion with his master, persuaded a buyer of corn to advance money to them for that cargo, telling the buyer that their vessel was fully laden with corn. Three days after sailing the master of the vessel was caught by passengers on board the vessel trying to scuttle the vessel. Having been caught, he jumped overboard and drowned. There was never any cargo and the scuttling of the vessel was unsuccessful.

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