Futures Markets

Energy Futures

Crude Oil Futures

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Natural Gas Futures

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RBOB Futures

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Heating Oil Futures

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Petroleum & Electricity Energy Futures

Starting in the late 1970s, energy futures are relatively new in comparison to other commodity markets; they grew out of a need to control price volatility with risk management. Futures and options have been integral in keeping prices in check, while also letting the market move naturally with geopolitical events. Like with most commodity markets, supply and demand drive the energy markets. Unlike other commodity markets, supply and demand are greatly affected by international politics. To protect prices from quick dramatic swings, futures and options regulate how much prices can change in a given timeframe. This is to protect consumers and producers alike.

Popular Energy Contracts

Crude Oil – Is an essential commodity that is used in nearly all aspects of modern society – gasoline, plastics, paint, detergent, medicine, make-up, etc. Because of this, crude oil and its price are always in high demand. Crude oil is not a uniform product and it is common practice to classify crudes based on three characteristics: gravity, sulfur content, and field of origin. The names of respective crude oils are indicative of these characteristics, such as West Texas Intermediate and Brent.

Natural Gas – Although most commodity markets are international, natural gas is primarily a domestic commodity. Texas, Pennsylvania, Oklahoma, Louisiana and Alaska are the top states for natural gas production in the U.S. Natural gas is measured by volume and heating quality. Demand peaks with winter’s heating needs and summer’s air conditioning usage.

RBOB (Reformulated Gasoline Blendstock for Oxygen Blending) – Mainly used for transporting ethanol, RBOB is a refined crude oil product. RBOB prices are heavily dependent on crude oil prices; this product is imported when crude oil producers do not have the means to refine it into gasoline. Though a crude oil producer makes more money off of the crude oil they sell, the producer must still pay higher prices to import gasoline.

Heating Oil – Heating Oil futures are a cash settled futures contract that are unique in the fact that they appeal to both physical and financial traders. Heating oil Is settles against the price for Heating Oil in New York Harbor and is settled in dollars and cents per gallon. Heating oil is the second most popular byproduct of crude oil and is a staple of everyday life

Energy Futures Reports to Watch


Fundamental of Trading Energies Futures


Energies

Oil Rebounds with Risk Ongoing

Alexander Turro
Energies

Nat Gas Bias Swings Back to Bullish “Down Here”

RJO Market Insights
Energies

Natural Gas in Good Area of Support

Jeff Ratajczak
Energies

Oil Drop Continues Following Weak ISM

Michael O'Donnell
Energies

Oil Prices Soften but Risk Remains High

Alexander Turro
Energies

Questions Remain Following Wild Week in Crude

Michael O'Donnell
Energies

Crude Up On Heels of Attacks on Saudi Arabia

RJO Market Insights
Energies

Trail S-T Nat Gas Bull Risk

RJO Market Insights
Energies

Crude Oil Resumes Slide

Alexander Turro
Energies

Crude Recovery Passing EIA Test

Michael O'Donnell