Energy Commodities – Oil, Gas, Power Trading
Introduction
Energy commodities are the fuel of the world. Crude Oil is the most actively traded commodity globally.
1. Crude Oil
A. Benchmarks
- Brent Crude: North Sea oil. Benchmark for Europe/Asia (India follows this).
- WTI (West Texas Intermediate): US Oil. Benchmark for America.
B. Price Factors
- OPEC: Org of Petroleum Exporting Countries (Saudi, etc.). Supply cuts = Price Hike.
- Geopolitics: War in Middle East = Supply fear = Price Spike.
- Inventory Data: US Crude Inventory data (released weekly).
2. Natural Gas
- Cleaner fuel compared to oil/coal.
- Used for heating (Winter demand) and Power Generation.
- Volatile prices based on weather (Cold winter = High demand).
3. Electricity (Power Trading)
- Electricity cannot be stored easily.
- Traded on IEX (Indian Energy Exchange).
- Spot Market: Buying power for the "Next Day" based on demand forecast.
Summary
- Oil: Brent vs WTI.
- Cartel: OPEC.
- Gas: Weather dependent.
- Power: IEX (Next Day Market).
Quiz Time! 🎯
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