Trading strategies - Walking a fine line

The energy markets have entered uncharted territory over the past few months, with oil, coal, and UK gas and power at or near all-time highs. Oil has risen 150%, from $60 per barrel in early 2007 to almost $150/bbl today, while coal has almost doubled in price over the same period to $220 per tonne. This has lead to a significant increase in the price of electricity, both in mainland Europe and the UK.

The problem for many businesses is not necessarily that energy prices have increased so much as