Energies

Trade Energies and take advantage of price movements that impact you on a daily basis!

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Energies
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Tightest spreads in the industry

Trading Energies

Here at Main Group FX, we offer our clients trading on spot energies, such as Brent, WTI and Natural Gas, which are considered to be the most important raw material resources on the planet.

CFDs on energies is a popular choice for short-term trading, especially when there is a surge in energy consumption, as during periods of active growth, demand increases. Prices are determined by global supply and demand for the physical product.

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Correlations

Often referred to as “black gold”, Oil is usually denominated in U.S. Dollars (hence the term ‘Petrodollar’), so a weak dollar will commonly cause Oil prices to rise, as the price of the product is directly influenced by the value of the currency.

Oil-producing nations have a dramatic effect on the supply, and therefore the price, as they may withdraw or boost the physical quantity of barrels available in the market.

Oil Throughout History

For example, since the mid-90s, the US imposed sanctions on Iran have prevented Iranian oil from entering the marketplace, widening the gap between supply and demand which results in higher prices.

Another noteworthy event occurred in 2014 when a much lower demand from the EU and China caused a sharp decrease due to the excess supply. For many years, the US government has been building up its oil reserves and should these be released to the market, or used domestically, energy prices may drop sharply as a result.

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