In this article we will be discussing various energy commodities, namely natural gas, heating oil and gasoline. Natural gas and heating oil can both be categorised as distillate energies, or distillates, whereas natural gas is a commodity extracted by drilling for gas deposits often found alongside crude oil reserves.
What are Energies?
The term energy, when related to trading is a broad term used to describe commodities which can be used as a means of power.
What are Distillates?
Heating oil and gasoline both derive from distillation, which is the process by which crude oil is heated, and the resulting gasses are cooled at specific temperatures. The temperature at which the gasses are cooled will determine which form of energy is produced.
This differs from natural gas, which does not need any distillation and is found naturally underground. It is important to note that all of these resources are finite, and will one day run out.