Best book on energy commodities?

Discussion in 'Commodity Futures' started by njchino371, Feb 1, 2008.

  1. Any recommendations?
  2. XBOT


    unless you are going to be working for a shop trading phys gas that trading natural gas book is going to be a lot of useless information for you.

    and it is best to read that book after you work in a shop for a few months...
  3. Hi Xbot!!, you'r right, but you can learn some very useful things.

    for example, 2 years ago I bought a similar book (crude oil physical trading) and I learn that when the baltic index drops substantially, The Brent benchmark tend to trade at a wider premium to WTI. (80% of the time). Thanks to that a made my best spread ever.

    I learn that the some of the big oil producers including Russia and Nigeria use Brent as a benchmark for pricing the crude they produce. In total, it's estimated that a little more than 20 million barrels of daily oil production are priced using Brent as a benchmark. So when i saw the dry baltic index going south I knew that the demand for brent (mainly due storage) will explode. I almost made 6 figures in 17 days with that spread (long brent/ short WTI)

    the energy market is extremely complex and fascinating, and if somebody really want a shot, One should understand the physical and OTC side of the market very well (at least).

    Im learning about the NatGas market and i found out that is even more complex.

    regards and happy trading pal.
  4. Thank you for your recommendations. What would you guys say is the fastest expanding energy market right now, Natural Gas? Electricity?
  5. Wish I'd read that book because I got my ass handed to me on a plate because of that spread
  6. DSX


    Could you please give the author and full title of the crude physical trading book , as I cannot seem to find it on amazon - I have been trading the arb for a while and did not realise there was such a book about !!!

    Thanks in advance DSX
  7. J-Law


    Rubibond do you remember that title of that book on crude oil trading ??
  8. Oil Trading Manual: A comprehensive guide to the oil markets Edited by David Long, Oxford Petroleum Research Associates. (the 2003 update edition)

    BTW: an excerpt from bloomberg:

    Daily shipments of North Sea Brent crude, part of the price benchmark for almost two-thirds of the world's oil, will fall by about 15 percent in March. Tankers are set to load 157,346 barrels a day of Brent crude in March, down from 184,552 barrels a day scheduled for February, according to the loading program of field operator Royal Dutch Shell Plc, Europe's largest oil company. A total of 4.88 million barrels will be shipped next month, compared with 5.35 million barrels in February. Brent is one of the four North Sea oil varieties used to price crude from the Middle East, Africa and Russia. The other grades are Forties, produced by BP Plc, Norsk Hydro ASA's Oseberg blend and ConocoPhillips's Ekofisk.
    This web can be helpful