Opportunities and Threats in Commodity Trading 2023

Listen to the latest episode on CTRM Radio Podcast with our CEO Jens Bartenschlager invited. He is sharing his expert insights on the energy and commodity markets in 2023.  Jens has a unique perspective on the current state of the market and what energy and commodity traders can expect in the coming year.

In his view, the energy and commodity markets are facing four fundamental changes as they become more global and competitive, faster (up to real-time), increasingly automated and more comprehensive with new commodities increasingly traded (such as biofuels, LNG, GoO, Lithium, and RECS

To gain competitive advantage of those market changes, energy and commodity traders must do two things: (1) promote growth and (2) drive for efficiency and scalability.

(1) Traders can promote growth by pursuing high-margin opportunities in niche markets, and by harnessing data analytics and algorithmic trading in volatile short-term markets.

(2) At the same time, traders need to improve their performance and efficiency by (i) measuring trading performance and (ii) by transitioning to a best-in-class operating model to drive efficiency and effectively enable continuous improvement. This includes merging middle- and back-office activities across commodity desks, installing interfaces with production and marketing assets, adopting a lean trading IT architecture, and optimizing post-trade-to-cash processes.

Listen to the full episode of the CTRM Radio Podcast with Jens Bartenschlager here.