Oil and Gas Futures are the most commonly traded energies on the futures market. It is also possible to trade energy contracts on coal, ethanol, gasoline and heating oil.
For many years many of the energies have been in very high demand with many interruptions in supply. This has created some extremely volatile market conditions on many occasions. This can provide some excellent trading opportunities.
Oil and gas play a major role in many parts of the economy and fluctuations can often affect other prices further down the line. For example when oil prices rise significantly like they have done in recent years, the price of goods that need to be transported also rises. One factor in the recent increase in grocery bills is the fact that it costs considerably more than it used to, to transport the goods.
For those wishing to trade or invest in gas and oil or any of the energies for that matter, energy contracts are an excellent way to do it.
One thing I feel it is extremely important to stress is, whilst many speculators do make a lot of money with energy futures, there is considerable risk. High volatility, combined with low margin requirements on contracts leaves the potential for losses in excess of your initial deposit.
Trading Oil Futures
A look at trading oil futures with a trading example.
Natural Gas Futures
A look at trading natural gas futures and past price action
Coal futures
A look at the Nymex Coal Futures contracts
Heating Oil Futures
A look at Trading Heating Oil Futures Contracts