The energy markets comprising of crude oil and natural gas have a direct effect on our lives as well as economies of every country. Questionably, energy markets are more interrelated to other asset classes as well as powerful than any other commodity markets. This is the reason that every day, everyone trading on these commodities keeps a watch on crude oil, natural gas, gasoline, jet fuel, coal plus other energies traded.
These markets are unpredictable – and can be activated by geopolitical upshots that can occur just about everyplace energy is produced, shipped or used up. Weather plus seasonality also plays a foremost role in a price increase or price decrease. Investors who discover the basics of the energy markets can locate chances that cover asset classes and facilitate to diversify a portfolio. Energy futures, as well as options contracts, provide investors an opportunity to hold a place in these markets, or hedge their spots.
Driving the economy – Energy
Crude oil which is one of the most traded commodities also provides ample of profit opportunities despite market conditions. Production throughout the world and the global economic wealth together influence the price of this commodity. However, the precise conditions can build powerful upwards or downwards trends. Owing to its high energy compactness, effortless transportability and comparative abundance, crude oil has turned out to be the world's most significant source of energy ever since the mid-1950s.
Natural gas is a flammable combination of hydrocarbon gases and is mostly known as a clean and safe energy source. Almost around the 500 BC, the Chinese detected the potential of natural gas oozing through the earth’s surface. They utilized it to boil sea water to separate the salt so that it becomes drinkable. Around 1785, Britain was the first country which commercialized the utilization of natural gas. During the same period, natural gas that was produced from coal was used as lighting sources for houses as well as streetlights.
Natural gas, the most uncontaminated - burning fossil fuel, is turning out to be a feasible future fuel option and thanks to stable technological advances. Mostly utilized for heating, its price is recurring, with the highest demand during the winters as well as summer months, and can be regulated by weather circumstances.
We at Gill Broking meet the hedging needs of crude oil and natural gas of Indian energy market participants and are provided next to our crude as well as refined oil, natural gas liquids, and other rising energy markets.