Energy Market Risk

Energy market risk refers to the potential for financial loss due to fluctuations in energy prices, supply, and demand. Factors like geopolitical events, weather patterns, technological changes, and regulatory policies can cause unpredictable changes in oil, gas, electricity, and renewable energy prices. Companies involved in energy production, distribution, or consumption face this risk, which can impact profitability and investment decisions. Managing energy market risk involves strategies like hedging and diversification to mitigate exposure to sudden price swings and ensure stable operations and financial stability.