Products
Commodity Derivatives
Derivatives on oil, natural gas, power, metals, agricultural products and emission allowances.
Introductory4 pagesPractitioner2 pages
1Commodity Derivatives
- IntroductoryOverview of Commodity DerivativesThe main exchange-traded commodities fall into energy, metals and industrial goods, and agricultural and livestock products. Electricity and emission allowances belong to energy.
- IntroductoryEnergy: Crude Oil and Natural GasCrude oil has three main price benchmarks, WTI, Brent, and Dubai, and they differ in where the oil is produced and in which regions' crude oil is priced against them.
- PractitionerPowerElectricity is hard to store, so there is no storage arbitrage linking the current price and the price for a future period.
- IntroductoryMetalsMetals divide into precious metals (gold, silver, platinum, palladium) and base metals (copper, aluminum, nickel and others), and precious metals are closer to financial assets.
- IntroductoryAgricultural CommoditiesSoft commodities are crops that are grown and harvested, such as sugar and coffee. Some sources also include grains.
- PractitionerEmissionsAn emission allowance is a permit to emit one tonne of carbon dioxide under a capped system, and it is separate from a credit that certifies emission reductions.