Oil and Gas Prices

Fluctuations in oil, natural gas and electricity prices have a significant impact on the global economy, influencing production costs, inflation and governments' energy policies. FT Mercati, with its oil and gas commodity price service, is the ideal partner to support companies operating in the energy sector that want to be constantly updated on the prices of these commodities.

Oil: energy barometer

Oil, which has always been considered the black gold, is the most traded energy commodity in the world and its prices are influenced by a multitude of factors, including:

• OPEC+: the decisions of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) regarding production directly influence global supply and thus prices.
• Geopolitics: geopolitical tensions in key regions such as the Middle East can cause supply disruptions and cause prices to spike.
• Global demand: global economic growth and demand for petroleum products, such as petrol and diesel, directly influence prices. So does the expansion of renewable energy.
• Investments: investments in oil exploration and production influence long-term supply.

Natural gas: volatile market

Natural gas is a versatile energy resource, used both for electricity production and for domestic and industrial heating. The volatility of its prices is mainly influenced by:

• Seasonality: demand for natural gas is highly seasonal, with peaks during the winter months.
• Infrastructure: natural gas storage and transport capacity influence its availability and prices.

Electricity: a Mix of Factors

The price of electricity is determined by a combination of factors, including:

• Cost of raw materials: the cost of raw materials used for electricity generation, such as natural gas and coal, directly influences wholesale prices.
• CO2 emissions: environmental policies and carbon taxes can increase the cost of producing electricity from fossil fuels.
• Renewables: the increasing penetration of renewable energies, such as wind and solar, may influence the composition of the energy mix and electricity prices.

The FT Mercati service helps you constantly and effectively monitor the continuous fluctuations of energy raw materials, enabling your company to optimise costs and improve production planning in order to respond promptly to market changes.