Energy carriers are very popular on the exchange today. This is a lucrative industry that is just gaining popularity.
The importance of natural gas for traders
Natural gas is an organic energy source that is formed from the remains of plants and animals. For the first time, this type of fuel began to be sold only during the industrial revolution.
Today, gas is critical in the production of eclectic energy, which is why it serves as an inexpensive and highly efficient fuel for institutions, industry and households.
The importance of WTI oil for traders
Crude oil is an important and valuable commodity in the global market. It is extracted from hydrocarbon deposits and used in the production of diesel fuels, gasoline and other products of the petrochemical spectrum.
This type of energy carrier today is an irreplaceable commodity in world trade. This is facilitated by the fact that oil affects virtually all existing economic sectors.
In addition to being used in the manufacture of energy carriers, it is also used in the production of fertilizers, plastics, cosmetics, computers, steel, etc.
Today in the world there are two grades of petroleum products, which are to guide the pricing in the exchange trading of energy resources: WTI and Brent. The first, according to the API, is sweet and light, with a fairly low sulfur content and a density of 40. We’ll talk about the second below.
The importance of Brent oil for traders
The Brent crude oil brand is an important benchmark that people pay attention to when determining the price of petroleum products. This type of oil contains a low percentage of sulfur and is quite light and sweetish. It is obtained most often in the North Sea. This oil is preferred over other sour and heavy energy carrier. Brent can easily be converted into diesel and gasoline.
Also the advantage of light oil is that it is easy to transport. This influences the fact that it has a premium value. The fact is that heavy types of oil products are very difficult to move through pipelines, and Brent passes through them at a high speed. Today, about two-thirds of all oil on the international market is estimated under the influence of the energy cost of a given brand.
Benefits of trading in the energy market
There are a number of reasons why you should start trading in the energy market:
- it is an opportunity for easy diversification of investments – oil or gas commodities in your stock portfolio will help reduce risks and exaggerate your investments;
- it is an opportunity to save your money – no global crisis will affect the market value of petroleum products, even with the highest turbulence in the market and unpredictable events in commodity, you will find a safe haven for your money;
- inflation hedging – the point is that the own price of products does not depend on the current exchange rate on the world market. They very often remain at their previous value, even if the price of the currency falls during the period of inflation.
FutureFX is a reliable platform where you can trade CFDs on the world’s most popular energy sources. Join us and multiply your income.