Energy

Energy is the category of commodities that impacts one’s daily life immensely. Energy prices affect the cost of pretty much everything we consume, even our groceries, clothes, and gadgets.

Energy drives the essentials we need to survive.

What is Energy Trading?

Energy Trading includes the products such as crude oil, electricity, natural gas, and wind power. These commodities fluctuate abruptly and are hence attractive to speculators. The great demand for energy and the fact that very few countries can cover their energy needs by themselves gave rise to Energy Trading globally.

Energy We Use is Divided into Categories

• Renewable
• Non-Renewable

The Renewable Energy Sources

Solar:

The energy obtained from the sun.

Geothermal

The energy harnessed from within the earth.

Wind

The energy harnessed from natural air movements.

Biomass

The energy harnessed from living matter.

Hydropower

The energy obtained from flowing water.

Non-Renewable Energy

Petroleum Products

Crude oil and other refined crude oil products like gasoline, heating oil, diesel fuel, jet fuel, lubricating oils, and asphalt.

Hydrocarbon gas liquids

Gas liquids are derived from natural gas and crude oil and alkanes and alkenes.

Gas

Energy consists mainly of methane.

Coal

A sedimentary rock that is burned for fuel.

Nuclear energy

Energy source derived from splitting the atoms of uranium.

The most developed commodity trading markets are in non-renewable energy resources, with some exceptions. Traders can trade these commodities indirectly through products such as shares, exchange-traded funds, and contracts-for-difference.