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Paper positions

Paper Positions In the context of energy commodities trading, the term “paper positions” refers to the trading of contracts like futures, options, and swaps, rather than the actual physical commodity. These contracts are financial instruments that give the buyer the right or the obligation to buy or sell a commodity at a future date for […] Read More

Panama Canal

**Panama Canal** The Panama Canal is a man-made waterway that spans the Isthmus of Panama, connecting the Atlantic and Pacific Oceans. It was constructed to provide a shorter and faster maritime route for ships, avoiding the lengthy and hazardous Cape Horn route at the southern tip of South America. The canal extends approximately 50 miles […] Read More

Optionality

Optionality refers to the feature embedded in certain financial contracts that gives the holder the right, but not the obligation, to execute a transaction at a predetermined price, within a specified timeframe. In the context of energy commodities trading, this often pertains to options contracts on commodities like oil, natural gas, coal, or electricity. Holders […] Read More

Oil products

**Oil Products** Oil products, also known as petroleum products, are the end products derived from the processing of crude oil in oil refineries. Crude oil is a fossil fuel that consists of a complex mixture of hydrocarbons and other chemical compounds. Refineries break down these hydrocarbons through various refining processes, such as distillation, cracking, and […] Read More

Offtake participation

Offtake Participation Offtake participation refers to the involvement of an entity, typically a trader or an investor, in securing the rights to purchase a certain volume of an energy commodity, such as oil, natural gas, or renewables, from a project. This arrangement usually involves long-term contracts or agreements and can provide the offtaker with a […] Read More

Natural gas

Natural Gas Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane (CH4), but commonly includes varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium. It is formed when layers of decomposing plant and animal matter are exposed to intense heat and […] Read More

Midstream assets

Midstream assets refer to the infrastructure and facilities that play a critical role in the transportation, storage, and processing of oil, natural gas, and other energy products. These assets serve as a crucial link between the upstream segment, which involves the exploration and production of energy resources, and the downstream segment, which encompasses the distribution […] Read More

Margin calls

**Margin Calls** In the context of energy commodities trading, as with other forms of trading, a margin call is a request from a broker to an investor to deposit additional money or securities into their account when the value of the securities held falls below a certain level, known as the maintenance margin. The maintenance […] Read More

LPG

LPG, or Liquefied Petroleum Gas, is a versatile energy source commonly used in heating appliances, cooking equipment, and vehicles. It is a flammable mixture consisting primarily of propane, butane, and various other hydrocarbon gas liquids. LPG is produced during natural gas processing and oil refining. It’s stored in liquid form under pressure in gas cylinders […] Read More

Liquidity

Liquidity in the context of energy commodities trading refers to the ease with which an asset or security can be bought or sold in the market without affecting its price. In more liquid markets, there are a significant number of buyers and sellers, and transactions can be completed quickly with minimal impact on the price […] Read More

Kyoto Protocol

The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change (UNFCCC), which commits its Parties by setting internationally binding emission reduction targets. Recognizing that developed countries are principally responsible for the high levels of greenhouse gas emissions in the atmosphere due to more than 150 years of industrial […] Read More

Kerosene

Kerosene is a flammable hydrocarbon liquid commonly used as a fuel in aviation, as well as in heaters and lamps. It’s a middle weight distillate between gasoline and diesel in the refining process, coming from crude oil. Its qualities include a high flash point (making it relatively safe to handle), and it burns cleanly compared […] Read More

Impact mitigation practices

Impact mitigation practices refer to the strategies, techniques, and measures undertaken to reduce, manage, or compensate for the adverse effects of development projects or industry operations, particularly in the energy sector. These practices are designed to minimize the negative impacts on the environment, local communities, public health, and the economy. They encompass a wide range […] Read More

Hydrogen

Hydrogen is the simplest and most abundant chemical element in the universe, represented by the symbol H and the atomic number 1. In standard conditions for temperature and pressure, hydrogen exists as a colorless, odorless, non-toxic, and highly combustible diatomic gas (H₂). It is notable for its high energy content per unit mass, which makes […] Read More

High sulphur bunker

High Sulphur Bunker High sulphur bunker, commonly referred to as high sulphur fuel oil (HSFO), is a type of heavy fuel oil used primarily as fuel for marine vessels. This fuel is called ‘bunker’ because it is stored in the ship’s bunkers. High sulphur content implies that the fuel contains a high percentage of sulphur, […] Read More

Hedging

Hedging Hedging is a risk management strategy employed to offset potential losses in investments by taking an opposite position in a related asset. In the context of energy commodities trading, hedging involves taking a position in a futures or options market to reduce the risk of adverse price movements of the underlying physical commodity, such […] Read More

Greenhouse gas emissions

Greenhouse Gas Emissions Greenhouse gas emissions refer to the release of gases into the Earth’s atmosphere that are capable of trapping heat and thus contributing to the greenhouse effect, which results in the warming of the planet. These gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and various fluorinated gases such as sulfur […] Read More

Glycerine

Glycerine, also known as glycerol, is a simple polyol compound. It is a colorless, odorless, viscous liquid that is sweet-tasting and non-toxic. It is widely used in pharmaceutical formulations, as a sweetener in the food industry, and as a humectant in moisturizers in cosmetics. Glycerine is also an important byproduct of the biodiesel manufacturing process. […] Read More