Trading Strategies
Energy markets have seen significant upheaval over the last few years, first triggered by the pandemic and exacerbated by geopolitical tensions, all whilst the industry attempts to find greener solutions to align with net zero goals. Combined, these factors have caused levels of unprecedented volatility and extremely high prices. With conditions changing so rapidly, more traditional risk strategies are a thing of the past – an agile approach to risk management is more important than ever. It is for this reason that LGE deploys exceptional market intelligence to develop the strategies it uses for clients.
Through the market intelligence which LGE collates, trends and patterns will be identified considering the following factors before deciding on a strategy:
- Market drivers
- Trends in the market
- Projected outlook for the market
- Historical energy prices
- Government policies and regulations
- Economic growth
- Technological advancements
- Environmental trends
- The risk appetite of the client
Once a strategy has been agreed between LGE and the client, a formal strategy document will be provided which enables the client to see how their portfolio is being optimised by cutting out trading inefficiencies. Keeping one step ahead is essential to maintaining a competitive position in a volatile and uncertain market.
Data Powering Our Market Intelligence
LGE uses many sources of primary data to power our market intelligence, including subscriptions to the following news sources: Bloomberg, Reuters, Elkon, National Grid, LNG Maps, Gas Infrastructure Europe, VuePoint and many others. Access to these sources allows LGE to research all relevant news and crucially energy market price movements.
Energy Trader Daily
LGE provides clients with a significant advantage through our ownership of Energy Trader Daily (ETD), a leading industry publication. Delivered each morning by LGE’s trading team, ETD offers comprehensive analysis across key energy market intelligence, including electricity, gas, oil and carbon. The daily briefing will keep you informed on:
- Market Movement News– Helps customers stay ahead of the curve with summaries of the previous day’s most important energy headlines.
- In-Depth Analysis– Helps customers gain insights into the major factors driving market fluctuations and their potential influence.
- Price Transparency– Helps customers track electricity and gas price forecasts for up to eight seasons, enabling informed decision making.
ETD can communicate information on a variety of aspects relating to energy market intelligence and customer’s requirements. These include:
- The Electricity and Gas System.
- Interconnectors.
- LNG Ship-Tracking.
- Gas Storage Levels.
- Raw Weather and Climate Model Data.
- Financial and Currency Markets.
Legislative Research
LGE also researches the impact of any new legislation on our customers. The impacts of these changes can be built into forecast reports to estimate the effect on a customer’s portfolio. Legislative changes LGE have briefed on include the Energy Bill Relief Scheme, Targeted Charging Review and BSUos Price Cap. Customers are also kept informed of geopolitical events which may impact energy prices.
For more information on our energy market intelligence speak to your account manager today or contact us at info@lgegroup.com.