Onyx and the World of Oil Derivatives

Greg Newman

An exciting new series of Financial Services Podcasts delivered by Onyx Capital Group - The worlds' largest oil derivative liquidity provider. Over the course of our series we will be discussing a variety of topics including how to hedge, working culture within Onyx and Insight into the oil market.

All Episodes

In this episode we explore the evolution of data analytics and technology in oil markets, which gained considerable traction in the last 5 years.We are joined by co-Founder and CEO of Vortexa Fabio Kuhn

Mar 22

51 min 54 sec

In this episode we explore commodity exchanges, counterparty risk and financialisaton of oil products post Dodd-Frank.We are joined by the Head of Oil Market Research for the Intercontinental Exchange, Michael Wittner, as we discuss  the evolution of the oil derivatives market with the introduction of cleared trading and how this has reduced counterparty risk. Already this has led to much greater access to trading oil derivatives, however we also look at how this may open up even further with the ever growing interest from retail money into financial markets.

Nov 2020

41 min 30 sec

In this episode we explore the role of physical oil traders and how they supply crude and products around the globe, as well as their influence on the derivatives market.We are joined by Co-Founder and CEO of Sparta Commodities, Felipe Elink Schuurman, as he shares his extensive experience and unique insights into the world of physical oil trading.

Nov 2020

47 min 14 sec

In our first episode we are joined by the Managing Partner of Audentia Capital, Chris Newman, to discuss Commodity Trade Finance and the Evolving Role of Investment Banks. Within this we explore the need for commodity trade financing in physical oil trading and how the previously dominant position of the banks has been eroded by the rise of cleared exchanges, increasing transparency and implementation of stricter regulations.

Oct 2020

1 hr 3 min

We continue our mini-series this week with Head of Commercial Rich Rawlinson introducing Andreja our Head of HR, who talks about her trajectory and her experience in HR at Onyx.

Feb 2020

33 min

Onyx CEO Greg Newman and Head of Commercial Rich Rawlinson talk about Oil Hedging. Offering insight into why some companies are daunted by hedging, why hedging doesn’t have to be complicated, how to effectively mimic your physical exposure, choosing the right contract and why some companies that think they are hedging but are actually speculating. 

E

Jan 2020

35 min 52 sec

As we start a new year, Onyx CEO Greg Newman, reviews 2019 and 6 of the major events which drove the oil price. In a year of multiple unplanned supply outages and fears over global growth due to the US China trade war, 2019 was not short of uncertainty and volatility.

Jan 2020

36 min 56 sec

This week we introduce Harry Campion (Partner and Head of US Grades), who talks about his experience at Onyx Commodities and in this industry. 

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Dec 2019

19 min 21 sec

In this episode, Alex Clayton, Nathaniel Loo and Amarjit Bhati - Junior Traders at Onyx Capital Group; speak about their day to day experiences at Onyx.They cover different topics, in detail, from their own experience. If you ever wondered what the life of a Junior Trader is this podcast tell us the real truth. 

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Dec 2019

38 min 46 sec

In this podcast, CEO of Onyx Capital Group Greg Newman discusses speculative bubbles and how the oil swaps market is particularly susceptible to them. He goes on to site examples that have occurred recently, whilst introduces the danger of the vast speculative open interest that currently exists ahead of the IMO 2020 regulation change.

Dec 2019

26 min 6 sec

In this episode, CEO of Onyx Capital Group Greg Newman is joined by two traders from Onyx Commodities who have come through the Onyx Trader Development Program, Benedict Williams and Ahria Roushanbakhti. The team discuss together the emergence of severe dislocations in compliant and non-compliant fuel prices ahead of the shift in regulations for bunker fuel ahead of the IMO 2020 regulations, questioning the logic of the price action and the influence of derivatives on the physical market.They go into detail on the current choices for bunker end users from an economic perspective, the price the market is valuing depressurization and introduce the concept of purchasing power that is still in the hands of the end users.

Dec 2019

32 min 8 sec

In this episode, Greg Newman (CEO of Onyx Capital Group) and Luke McDermott (Partner and Head of LPG desk at Onyx Commodities) speak about Luke's history and trajectory getting to where he is today; 40% of the Global Oil swaps market. Luke tells us what it takes to fully understand markets, how hard he worked to get where he is, how the barrel prices and Oil derivatives in general.

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Nov 2019

32 min 35 sec

In this episode we look at the next step in hedging oil price exposure choosing the right contract. We introduce the concept of basis risk and liquidity or entering and exiting contracts with efficiency. We then move on to the need to work through time, product location, specification and finally execution to build the ultimate hedging solution.

Oct 2019

22 min 21 sec

“At what point do you acknowledge exposure in your PnL?”Richard Rawlinson, Head of Commercial at Onyx Advisory demonstrates the 10 stage Onyx methodology following organisational processes from vendor sourcing, requisition order, approval, purchase order, good received, data capture, invoice matching, payment, tracking and finally, reconciliation. Remember - “If you are not hedging, you are speculating”.

Oct 2019

6 min 26 sec

In this week's episode, Greg Newman, Co-CEO of Onyx Capital Group - the world's largest oil derivative liquidity provider - and Richard Rawlinson, Head of Commercial at Onyx Advisory, start at the very beginning; what actually is hedging? They provide their own definition as well as common misconceptions, mistakes and bad practices that are rife in the business today. They emphasise how hedging is all about fixing cash flow by mimicking physical exposure and that, if you're not hedging, you are speculating!

Oct 2019

34 min 3 sec