Energy and Gold Trading

The energy industry is the third-largest industry in the world, and the energy markets are what is known as commodity markets, and they deal specifically with the global trade and supply of energy.

The most dynamic energy markets focus on four main commodities: electricity, gas, coal and oil. Trading in the energy markets is done at exchanges, but is also done outside of these exchanges on a bilateral basis.

The main markets on energy exchanges include the spot market (best for short-term trading which allows for traders to speculate on the price of energy, without actually buying or selling the underlying commodity, such as oil, gas, coal and electricity).

The huge potential in these global markets is what EnergyTrade.com provides access to. Anyone with 7 minutes spare, can learn to use our simple trading platform to take advantage of this potential for profit.

 

WTI Crude Oil (OILUSD)

Oil is still one of the most important commodities in the global markets. Supply and demand is perceived as an indicator of how the world’s economy is performing and the price of oil usually affects the prices of all other commodities. The price of oil is determined by global commodity exchanges such as ICE and NYMEX.

Given that much of the world’s oil reserves are held by only a few countries, the market price of crude oil if often significantly affected by national and international politics. Any major change in foreign policy should be factored in by traders, in addition to other economic factors, when attempting to predict future oil prices.

There are three important benchmarks for crude oil in the world, and West Texas Intermediate (WTI) is the second most important of all of these. West Texas has the most liquidity globally, and is the main resource for all North American oil.

WTI Crude oil is traded in barrels against the US dollar on our platform.

 

Brent Blend Crude Oil (OILGBP)

64 per cent of all crude oil contracts in the world reference Brent Blend (Brent). This makes it the most widely used benchmark for all oil trading the world over.

Brent generates a blend of crude from 4 fields in the North Sea; Brent, Forties, Ekofisk and Oseberg, and forms the foundation for the prices at which European oil is set at.

Brent Crude oil is traded in barrels against the British Pound on our platform as this currency is the closest in proximity to the North Sea which is the source of the Brent Blend.

 

Natural Gas (GASEUR)

The price of gas is set in a very similar way to that of the price of electricity: by supply and demand. Companies buy the gas as it flows from the well, and pay a "wellhead price". At this point, the gas has not yet been processed or transported.

Natural gas is used in a range of industrial processes, and is ultimately converted into heat and electricity. In many households it is used for heating and cooking.

Natural gas is a more expensive energy source than many other fossil fuels, and as a result, it is subject to significant price fluctuations due in part to its direct link to the price of oil.

On our trading platform natural gas is traded against EUR as an important player in the electricity market.

The unit refers to British Thermal Units (BTU), where One Million units (MMBTU) equals 293 kWh. The first digit in our rate is the whole EUR and followed by Eurocent, so e.g 25100 is 2 Euro and 51 Euro cents.

 

Gold (XAUUSD)

Whether prices are rising or falling (bull or bear market), gold trading benefits from deep liquidity and great opportunities to seek profit in nearly all market conditions. This is due to its unique role in global economics and politics.

Gold is one of the oldest tradable assets in the world, and it deeply embedded in the minds of everyone in the financial world. Almost every person who trades has their own opinion about gold regardless of whether trade the asset itself or not. However, gold only responds to a specific number of price catalysts. Each of these catalysts affects traders’ sentiment, trading volume and the intensity of the trend.

Gold is a premium precious metal and is highly malleable. Throughout history, gold has been considered highly valuable due to the preciousness of its inherent nature, and it has been used as a form of exchange or currency for centuries if not millennia.

In terms of those factors that affect the price of gold, there are a number of points to bear in mind. The price of gold reacts differently depending on the type and nature of the economies in which it is used, and this variable nature of its price derives from the various different uses which different countries and regions of the world make of it.

When considering the price of gold, it is essential to consider the US dollar. Both assets possess an inverse correlation with one another. This means that if USD increases in value, gold would be likely to decrease in value as a direct consequent, and the opposite is true also.