Futures on the energy
Of the many investment opportunities in energy and petroleum products (purchase of shares, partnership, participation in the upstream and downstream oil companies, etc.) the most convenient way that requires the least cost is speculation in futures and options on oil products. Traded in the oil market instruments can be divided into two categories: the past is not processed (oil and natural gas) and petroleum products (gasoline, fuel oil, kerosene, diesel).
When trading it is important to understand the difference between the two groups. Products of the first group formed as a result of natural processes and deposits are unevenly distributed around the globe. Used for the extraction of oil platforms (for offshore) and towers (for the fields on the land). Refining takes place at specialized refineries, delivery of which is carried out either by pipeline or by using oil tankers. Natural gas is suitable for use immediately after cleaning from the accompanying impurities.
The second group of products obtained by processing crude oil, by separating the hydrocarbon components primarily using distillation. The result obtained by processing ready-to-use products: gasoline (cars), diesel (trucks, agricultural machinery), kerosene (aircraft), fuel (electric and thermal stations). From a barrel of oil quality can be obtained third barrel of fuel oil and two thirds barrel of gasoline.
The U.S. market is most suitable for investment in petroleum products. Due to a sharp change in the price of a category of products in recent years, speculation in futures contracts can be quite profitable. Trading in the form of an open auction, as well as OTC transactions take place on the Stock Exchange NYMEX, trades in electronic trading system of CME Globex.
The most popular among investors in futures listed below in descending order likvidnosti.NeftLight Sweet Crude Oil - a futures contract for 1000 barrels, ticker CL
GazNatural Natural Gas, Henry Hub - the futures contract for 10.000 mmBtu, ticker NG
MazutHeating Oil - Futures for 1000 barrels, ticker HO
BenzinRBOB Gasoline, NY Harbor - futures for 1,000 barrels, ticker RB
In exchange NEMEX have the opportunity to trade mini futures (miNY's), the volume of these contracts is two times less than conventional contracts (gas - less than four times). Trading activity on the mini-futures is small, but they can be used by speculators who prefer a smaller size and lack of physical collateral supply. The volume of petroleum products in the U.S. is measured in barrels or gallons. 1,000 barrels = 42,000 gallons = 158.987 cubic meters.
