Natural gas may not seem as popular as oil for trading, but it is seen as a more “sustainable” option with greater available supply, making it a priority for many governments and a potentially lucrative investment.
Natural gas is mostly supplied by the Middle East, but is available also elsewhere in the world, including USA. Storage is a challenge, but it can be exported as a liquid called LPG, which has opened new market opportunities. Technologies are constantly developing, and this resource is gradually gaining prominence, making it an interesting and promising area to monitor and invest in.
The great advantages of natural gas trading are the low price, rising demand, and positive trends for future developments. With some skill and the right timing, traders can achieve great profit on this market. Naturally, there are no guarantees, but in this space more than anywhere else we are seeing interest from various groups and significant developments within a short time frame. A notable fact is that processing and refining of this commodity yields large quantities of by-products which are also subject to great interest from the chemical industry and could have valuable industrial applications, making natural gas even more attractive.
How natural gas prices are formed
The price of natural gas has been influenced by technological developments allowing for cheaper conversion into liquid and opening new export opportunities. As political relationships between natural gas-producing countries and the USA tend to be difficult, the potential market in the States remains underdeveloped. New events in this area may influence the economies of entire producing countries and hence affect the global market as a whole.
If you feel ready to step into the complex, but potentially spectacular market of natural gas trading, please don’t hesitate to turn to TradeBNP for useful support and resources.