Trading and Risk

Forward Curves, Part 3: How Do Curve Building Tools Work?

byYousuf Saghir

In our previous blog, Why Do Traders Need Forward Curves?, we identified some of the challenges that are faced when traders are trying to predict prices in the future.

Curve building tools, such as CurveBuilder from Enverus, can automatically calculate and generate forward curves based upon multiple numerical inputs, through a very simple user interface.

Once the user has set up the curve calculation logic, it will automatically create the forward curve on the desired basis (hourly, daily, etc.)

A monitoring view allows one to easily check if all curve calculations succeeded or if errors occurred. It has an in-built graphical tool to view your curves and export values to excel.

You can also setup quality checks on curves and see if any failed. For example, we may want to monitor percentage changes in the monthly tenors or we may want to check for gaps in the curve. From our workflow tool integrated with CurveBuilder, you can set up email notifications of the status of the curve and validations.

CurveBuilder also gives you the ability to set up how you would like your curves to be built. Most of our clients use the auto build, where curves are automatically built as soon as the daily settlement prices are published. You could also schedule your curves to run at set times in the day for business or technical reasons. You can also build curves in real time based on live data from Trayport, Refinitiv, Bloomberg, ICE and CME.

CurveBuilder also simplifies unit and currency conversion for your data. For example, NBP contract is natively in £/Therms; but if you wanted to view it in €/MWh, then it’s easy to set the currency and unit on your NBP curve to a different one from the underlying futures instrument and CurveBuilder will automatically do the conversion. CurveBuilder also allows you to define your rounding method and decimal precision for those contracts you may have that specifies the precision of the prices.

CurveBuilder comes with APIs that make it simple for you to feed them into your downstream systems like ETRM or ERP. We also have out-of-the-box adaptors to make the integration quick and seamless. You may have instances where price corrections are issued; CurveBuilder will automatically re-run your curve if the curves are set to auto build, and then feed the new curves downstream.

CurveBuilder also allows traders to upload their marks. Traders may want to upload their marks to the central repository and compare to a benchmark for example. Our Excel plug-in allows traders to consume forward curves in Excel and then upload data from Excel to the trader mark and view the uploaded data in MarketView, our front-end system for traders.

In essence we make creating, managing and maintaining curves simple so you can focus on what’s important to you — trading!

Learn more about how Enverus’ CurveBuilder can revolutionize your forward curve management today.

Yousuf Saghir

Yousuf Saghir

Yousuf joined Enverus in 2021 and manages a portfolio of products. He brings more than 15 years of experience in trading, risk, regulatory and settlement, in both financial services and commodity industries. Yousuf works with a cross-functional team to enhance and grow our suite of market data and curve building applications to meet the challenging needs of our customers. Yousuf is responsible for the vision, strategy and roadmap of the DataManager and CurveBuilder applications.

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

Energy Analytics Energy Transition
ByAndrew Gillick

In case you missed it, Enverus virtually hosted EVOLVE, our flagship conference, May 16-17. The event included two full days of presentations, panels and keynotes, distilling the most relevant data and thoughts on the industry today.  Below Andrew Gillick, managing director...

Energy Analytics Other
ByShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and...

Energy Analytics Intelligence Publications
ByMaurice Smith

Wildfires that have already scorched more than double the average annual fire destruction across Alberta forced the shut-in of more than 300,000 boe/d while threatening future shuttering of output from the so-far largely unaffected oil sands region. Record temperatures saw...

Energy Analytics Energy Transition
ByHeather Leahey

CO2 containment risk has become one of the most popular topics among our clients evaluating CCUS projects. Operators need to understand and evaluate subsurface features that could trigger CO2 migration and containment losses as well as introduce additional safety, reputational...

Energy Analytics Energy Transition
ByRyan Luther

Anyone who thinks spending time at a public charging station is a blocker to buying an electric vehicle (EV) might want to consider the numbers behind EV and internal combustion engine (ICE) vehicle refueling times. The answer is that it...

Enverus Blog - 6 tax preparation tips for mineral and royalty managers
Energy Analytics
BySilas Martin

Recent years have been a roller coaster for mineral buyers, from record low commodity prices to highs for oil and natural gas in the last year. Going forward, challenges and opportunities will be plentiful. We expect oil prices between $80...

Power and Renewables
ByKenneth Curtis

It’s that time of year when generator and transmission outages are at their peak in PJM. The first half of April has not disappointed volatility-wise as the WHUB/NIHUB spread has set new 30-day highs largely driven by congestion. Figure 1:...

Enverus Blog - April's energy outlook: Analyst insights you can't miss
Analyst Takes Energy Analytics
ByChris Griggs

May marks a new month, and it’s essential to assess the energy landscape of April. Our Enverus Intelligence® | Research (EIR) team has scrutinized critical trends and advancements, delivering to you insightful analyst takes that can shape your business decisions....

Energy Analytics
ByCayley Krynowsky

Inventory is king in 2023. Operators and investors alike are more concerned than ever about remaining inventory – who has it, where is it, and will it be economic? To answer these questions, most turn to the tried-and-true, but also...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Access Product Tour

Speak to an Expert

Book a Demo