Why Natural Gas Commodities are the center of attention
Natural gas trading is quite underrated. As the warnings of regular fossil fuels running out become more and more realistic, exploration of the semi-sustainable natural gas front is a priority focus for many countries- and the market moves to follow.
Some interesting facts about the natural gas trading market
Natural gas is much cleaner and more efficient than other fossil fuels; it can be supplied within the US, even though the majority of the global reserves are contained within 15 countries, most of them in the Middle East. The developments in modern technologies have increased yields, though they are still behind traditional fossil fuels. It can be exported in liquefied form (LPG), but is tricky to store, therefore demand is almost always high. Running pipelines across the oceans is not financially feasible, so the LPG technology that is enabling export opens up an interesting market situation. This can have various repercussions on the market, and cause great volatility. From the fossil fuel market throw-away by-product, gas has become to a critical component of its own. We at DeltaFXMarkets believe there is a good future ahead for the natural gas trading market.
Why should you choose natural gas commodities?
In summary, gas is in a good economic position – low prices, rising demand. These commodities are steadily growing in popularity on the market and they could bring huge profits to a careful trader making a wise move.
Of course, as with all commodities there are no guaranteed returns, but natural gas is a market that has the ‘green’ economy watching with interest. It also has interesting by-products due to the need for refinement and removal of chemical compounds. These products in themselves- like ethanol- can also be sold on to refiners who have other uses for them, and contribute to the economy in turn.
What influences the price of natural gas?
As gas lines could not reach everywhere, gas export used to be complicated. Now, when the LPG technology has become cost-efficient, and is beginning to open up the possibility of a lucrative export market.
Qatar is currently the world’s home base for natural gas fields, with potential for 1180 trillion cubic feet of gas- about 20 of the world’s supply. Export however is complicated by the strained relations between the US and the Middle East. Over 85% of natural gas is spread between only 15 countries, and the US doesn’t dominate the international arena despite the potential for local domestic consumption.
All of these factors will influence the daily movements of natural gas price movement, as they affect the economy of manufacturing countries, as well as export and import.
On the other hand, better technology makes gas extractions easier, which will increase demand over time. Likewise, you will have issues of domestic vs. international production to balance within the market demands.
Are natural gas trading and the natural gas commodity market right for you? DeltaFXMarkets firmly believes that this commodity market offers a lot of potential.