energy trading

Energy trading involves buying and selling various energy commodities like electricity, natural gas, and oil on financial markets. Traders predict future energy prices based on supply, demand, weather, and geopolitical factors to make profits. Utilities, producers, and investors participate to manage risks, secure supplies, or capitalize on price movements. The process often occurs through exchanges or over-the-counter deals, with prices influenced by real-time conditions and anticipated trends. Overall, energy trading helps balance energy supply and demand, ensuring reliable delivery while enabling participants to hedge against price fluctuations.