The Oil Refining Commodity Management SolutionManage position, risk, logistics, and accounting
The Oil Refining Commodity Management Solution – Commodity XL
Trading and Risk Management
Refiners’ profits are tied directly to the crack spread, or difference, between the price of crude oil and the prices of refined products such as gasoline, aviation fuels, distillate and residual oil, liquefied petroleum gas (LPG), coke, kerosene, and petrochemicals.
Transparency of key data is crucial to managing the crack spread and controlling margins for the refinery. Refiners wishing to succeed must have sophisticated energy trading and risk management (ETRM) systems in place that not only transact and capture data in real time, but that also provide critical business intelligence and analysis information to make optimal decisions around trade execution, position management, and physical logistics.
The Oil Refining ETRM Solution
Commodity XL for Oil™ provides complete control over trading operations. With Commodity XL traders can better manage current positions and gain real-time information to take advantage of market movement. Commodity XL integrates physical and financial trading, improves trading efficiencies with deal entry templates/blotters, provides sensitivity analysis, and enables “what-if” scenarios.
Price Risk Management
Commodity XL provides sophisticated tools for portfolio stress testing and sensitivity analysis to run what-if trades. Commodity XL analyzes real-time position and exposure — market, volumetric, credit, delivery, and FX risk — at granular and rolled-up levels for optimized price risk management.
Counterparty Credit Risk Management
Commodity XL for Credit Risk proactively measures, manages, and mitigates the risk arising from counterparty default. The solution addresses the entire credit risk process with a full range of credit analysis and operational tools in 3 key areas: exposure, collateral, and counterparty management.
Commodity XL for Hedge Accounting™ manages the daunting set of requirements under hedge accounting regulations, including the detailed testing, documentation, and reporting that must be performed in order to qualify for hedge accounting status. The solution ensures full compliance with ASC 815 (FAS 133), ASC 815-10 (FAS 161), IAS 39 (IFRS 9) and similar national hedge accounting regulations.
Fair Value Disclosure
Commodity XL for Fair Value Disclosure™ provides the tools and framework to define, measure, and manage fair value levels and meet all disclosure requirements for ASC 820 (FAS 157) and IFRS 7 compliance.
Commodity XL PhysOps ‘Visual Cockpit’™ helps schedulers plan, conduct, and optimize complex physical movements in real time. It manages the logistical complexities and streamlines the supply chain operations required to transport oil and refined products. Commodity XL PhysOps ‘Visual Cockpit’ handles all transactions from straight forward physical trade matching, to complex itinerary scheduling involving multiple trades, commodities, methods of transportation, and inventory movements.
Supply Chain Planning and Optimization
Triple Point’s WAM Supply Chain Solutions deliver a comprehensive set of visualization and decision support tools that address the unique challenges of managing complex oil supply chains. Advanced functionality optimizes every aspect of the supply chain from demand management and distribution planning through production scheduling and sourcing. WAM Supply Chain Solutions provide all the tools required for developing accurate plans that maximize profitability and productivity.
Commodity XL – The Complete Solution for the Oil Refining Industry
Commodity XL provides an enterprise view of position and risk for increased transparency and manages multiple commodities on an integrated platform. It delivers superior, real-time business intelligence for proactive decision-making and competitive advantage.