Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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Pay Attention to Energy Futures
By Mark O’Brien, Senior Broker
Every country in the world depends on energy. For some, energy production is the backbone of their economies. Energy products
as a percentage of all that a country exports can be as high as 90% or more. Kuwait, Libia and Iraq are notable examples. For others, energy is a scarce resource within their borders making it necessary to import it. Countries like South Korea, Ireland and Japan import over 80% of their needed energy. Governments, multinational corporations, international consortiums (think OPEC) often vigorously compete for control of energy production and distribution – and the revenue that comes from them. Energy resources have literally fueled wars for their control. Without doubt, oil, its refined products and natural gas are among the world’s most valued commodities.
Not surprisingly, energy futures contracts like crude oil, heating oil, unleaded gas and natural gas are some of the largest futures contracts in the world by volume. The CME Group’s NYMEX Exchange offers trading on some of the energy sector’s benchmark products, including West Texas Intermediate (WTI) Crude
, Henry Hub Natural Gas
, Brent Crude and RBOB Gasoline
Like stock index futures, energy futures trade 23 hours a day (5:00 P.M. – 4:00 P.M., Central Time), Sunday through Friday. Both crude oil and natural gas offer mini contracts and crude oil even offers a micro contract.
If you’re trading is solely focused on stock indexes, think about adding energy futures to your watch list and expanding your trading power (pun intended) with energy futures contracts.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.
Futures Trading Levels
Economic Reports, source:
This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading as well as options on futures.
Tags: Brent Crude > crude oil > Crude oil futures > Natural gas > Natural Gas market
Posted in: Crude Oil | Future Trading News