Modeling Greeks in the energy sector is primarily used for trading strategy. The trading strategy could be simply as a natural long or short with or without a price view. Ofcourse the first step is to ensure that the option model best represents the physical nature of the optionality that exists in the energy markets. There are multiple variations including Blacks option model where pricing formula reflects this solution, modeling a forward price as an underlier in place of a spot price. The model is widely used for modeling European options on physical commodities, forwards or futures. It is also used for pricing interest rate caps and floors. The model is popularly known as Black '76 or simply Black Option model.