Why Natural Gas Commodities are in the spotlight
Natural gas trading is often underrated. Concerns over the supply of more ‘normalized’ fossil fuels continue to get stronger, and the exploration of the semi-sustainable natural gas front has become a priority focus for many countries together with market movements to match.
Some interesting facts about the natural gas trading market
Natural gas is clean burning and efficient. It can also be supplied from within the US, although 84% of the world’s natural gas reserves are held by 15 countries, mostly from the Middle East. Modern technology helped increase yields significantly, although it still lags a little behind traditional fossil fuels. Natural gas can be exported in liquefied form (LPG), but is difficult to store, and this means that demand is almost always high. Pipelines cannot be easily run across oceans, so the LPG technology that is enabling export provides for an interesting market move. This can have different impact on the market and can cause volatility. Natural gas has moved from a by-product of the fossil fuel market to a critical component of its own. At MT4Quotes we believe there is a great potential for the natural gas trading market.
Why should you choose natural gas commodities?
Natural gas is low priced, it has a favourable environment, great economic position and its demand continues to rise. The popularity of natural gas commodities increases on the market, and natural gas trading may well reach spectacular profits for the right person trading at the right time.
Of course, as with all commodities there are no guaranteed returns, but the potential of natural gas as a resource of the ‘green’ economy has earned its due interest. It also produces interesting by-products due to the need for refinement and removal of chemical compounds. Such by-products, like ethanol, can also be sold on to refiners who can utilize them, thus contributing to the economy in turn.
What influences the price of natural gas?
Natural gas used to be difficult to export as pipes cannot be run to the destination. However, the cost of converting to liquid natural gas has dropped considerably, so a possibility of a lucrative export market has been opened up.
Qatar is currently the world’s home base for natural gas fields, with potential for 1180 trillion cubic feet of gas, which is about 20 percent of the world’s supply. However, difficulties in US and Middle East relations impede the development of an environment for safe exports. Over 85% of natural gas is spread just between 15 countries, and the US doesn’t dominate the international arena despite the potential for local domestic consumption.
The sum of all these factors has a daily effect on the natural gas price movement, as they influence the economy of manufacturing countries, and on export and import.
At the same time, improving technology makes gas extractions easier, which over time will increase demand. Furthermore, there are issues of domestic vs. international production to balance within the market demands.
You can decide if natural gas trading and the natural gas commodity market is right for you. MT4Quotes strongly considers this commodity market to offer much potential.