What are energies contracts?
Trading in energies contracts is favorited by investors specifically crude oil and natural gas.
- Sensitivity of energies prices:
The energies market is an energetic and non-stop fluctuating market for several reasons:
Any political issue within an energy producing country is reflected on the price of the energy they produce, specially that fear among investors escalates regarding production volume and logistical support.
- Climate and weather change:
Energies are categorized as commodities and it gets affected by climate and weather changes, such as high heat that would slow down production or logistics network.
Normally energy producing country are part of and regulated by an international body that would discuss production, logistics, and discuss challenges such as OPEC.
Supply and demand represent the biggest factor affecting energies prices. When supply increases, price decreases and when supply decreases price will increase.
Energies prices are directly linked to the US dollar, prices might move against the USD movement as well as energies prices gets affected by economical/financial stability of the