Natural Gas Trading

Natural Gas is one of the largest segments of the energy industry, and each of the world’s biggest producers of the commodity is also some of the most well-known brands in the entire world. These companies are so vital, even their company Natural Gas stocks are publicly traded.

Natural Gas also comes from specific countries, who work with these companies to extract additional supply of the commodity. The below table will outline which countries are the world’s largest providers and their expected production supplies in billion cubic meters.

Stored reserves

Gas is added to stored reserves during times when demand is lower so that they can be distributed during times when demand is high. However, if that supply ever falls too low, the price of gas will rise in response until demand diminishes again.

Global demand

Global supply and demand play a major factor in the price of fossil fuel. Every country's needs are different, and macroeconomic policy can shift at any moment, which in turn creates price volatility that is ideal for traders.

Weather

Natural Gas is among the top forms of energy to heat a home or business. If one country experiences an extremely cold winter, the demand may rise across the globe, while supply drops, causing extreme price fluctuations. However, if it is a warmer than average winter, Natural Gas demand may drop, and supply may need to be stored in reserves until demand rises once again.

Development of alternative power

Natural Gas and Crude Oil are called fossil fuels because they are derived from the earth itself. As these forms of energy are burned, they give off emissions that have become of concern to the environment. Therefore, there’s been a push for the development of alternative energy sources, such as electricity, solar energy, hydrogen-power, and much more.

Price of alternative forms of energy

Newer forms of energy are currently more expensive than traditional forms of fuel like Natural Gas and oil. These alternative fuels also have their own dynamic supply and demand, and as their price rises or falls, it can have a dramatic impact on Natural Gas. For example, if advances in hydrogen-powered cars eventually make it far cheaper for vehicles to operate on hydro-power and not natural gas products, the supply of Natural Gas will far outweigh the supply, and producers will need to adjust, and the price will change accordingly.