Petroleum is the world’s most widely used fuel while crude oil is the most actively traded commodity. The NYMEX light futures contract in particular, is the world's largest-volume futures contract traded on a physical commodity.

    Besides crude oil, natural gas is also highly traded as it is an important fuel source and a major feedstock for fertilizers. Trading energy futures allow investors to manage their exposure against fluctuation of energy prices and to explore investment opportunities. Energy commodities range from crude oil, natural gas, kerosene, gasoline and gas oil. 

    Benefits of trading Energy Futures:

    • Crude Oil and Natural Gas Producers – to hedge against lower prices on their production.
    • Refineries – to hedge against higher crude oil costs and against declines in refinery margins.
    • Pipeline Shippers – to hedge against declining value of inventories.
    • Wholesalers – to hedge against both contract purchases and contract sales.
    • Retailers – to hedge against both inventories price decline and retail margin decline.
    • End Users – to hedge against increasing prices on anticipated purchases.
    • Freight Shippers – to hedge against increases in fuel surcharges.
    • Speculators – to capitalize on price movements and speculative purchase and sales.

    icon   What Energy Futures contracts are available for trading? Find out more.