Multi-factor forward curve models for energy risk management
Applied risk management series – article two
In energy markets, forward price changes over time are largely determined by new information regarding the expected average spot price during a future delivery window, and therefore their behaviour is substantially different from that exhibited by spot prices, which immediately react to short-term changes in the physical market.
Click here for a full version of this article in PDF format, which includes all of the figures and tables within the feature
Forward curve behaviour
Some of the key
More on Risk management
Asian banks close out energy clients as Iran war bites
Firms with short jet fuel positions faced losses up to $100 million as initial margin soared 566%
How AI agents can join the dots for risk managers
Citi risk expert outlines agentic AI tool that would pull together structured and unstructured data on trading and lending approvals to create single, unified view of risk
In Iran war, VAR models ease cliff effect on Ice and CME margins
At 105%, EEX – using Span model – saw largest single-day jump compared with those CCPs
Newcomer of the year: Abaxx Exchange
Energy Risk Awards 2026: New exchange sets out to modernise commodity derivatives by aligning them to physical markets
AI project of the year: SOCAR Türkiye
Energy Risk Awards 2026: Risk team harnesses AI to transform RCSA into a scalable, sustainable and internally owned capability
Data, cyber and model risk top IT concerns for risk managers: survey
Energy Risk software survey reveals risk managers’ tech pain points and plans
Energy Risk Debates: the Iran conflict and the widening mandate of the risk manager
Panellists discuss the impact of the Middle East crisis so far on risk teams and the drive towards enterprise risk management
Abaxx: meeting the need for new commodity derivatives
Abaxx revamps commodity hedging with a suite of modern contracts
