Energy trading can turn volatility threats into opportunities

Expect the unexpected

Energy markets are unpredictable, Chaos theory is a better guide for buying energy than forecasting attempts. The number of unexpected events or other factors co-influencing each other in the energy markets is too numerable.

This volatility and unpredictability means that you can never be sure whether your decision to fix, not fix or unfix an energy price is taken at the best possible moment. Therefore, energy market volatility is a threat to the bottom line of your company.

A good energy consultant will assist you in managing this risk and seize the opportunities that lie hidden in the curves of energy pricing.

First step: understand the markets

What’s next? It has to be risk management

A well-defined and well executed energy risk management strategy can protect your company against the whims of energy markets.

An in-depth analysis of your business and how it is affected by energy price volatility will set the framework for your energy price management decisions.

BUDGET RISK

Mostly affected by unexpected increases in your energy spend. Fixing prices several years into the future will stabilize your energy costs.

MARKET RISK

Risk losing out to the competition if you fix and the markets drop. Be prudent with fixations.

SURVIVAL RISK

Risks on the upside as well as on the downside. Carefully balance long-term fixations with staying close to market averages.

Ready to strike the balance?

It’s not an easy task to strike the right balance between eliminating the risks and exploiting the opportunities of energy market volatility, but with E&C by your side you can achieve this stability.

If you’d like to learn more about our common sense approach to trading energy:

“Because of their thorough market follow-up and risk management, E&C helped us distinguish fundamentals that really impacted the market and prevented us from panicking over smaller upswings in the market as we sometimes did before.”

- A company in the transportation industry -

🔎 Want to read more? Our blogs cover important aspects of risk management ↓

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