Energy exists in many different shapes and the need for energy has never been greater. From an investment perspective, the energy related commodities (ie: oil, gas etc) are highly correlated with inflation.
While the other instruments in your portfolio is adversely affected by rising inflation, energy prices tend to go up when inflation does. The reason is simple. The prices of these commodities must be adjusted for inflation and it can be done only by a price increase.
Want to know more about popular energy products to trade?
- Oil: One of the most volantile commodities are not calming down. Read our intro about oil.
- Crude oil: The most traded single oil product. Read more about crude oil.
- Brent oil: The most common oil type in Europe. Read more about brent oil.
- Natural gas: One of the important energy sources, for both individuals and companies. Used to generate electricity, when heating buildings, providing heat and power to industry, as fuel for cars and buses. One of the most volatile instruments. Read more about natural gas.