Commodities
Energy Commodity
Definition
What is Energy Commodity?
A tradable energy resource such as crude oilUnrefined petroleum traded in physical and derivatives markets., natural gasA gaseous fossil fuel traded for power, heating, industrial, and export use., or refined fuel.
Example in practice
How This Looks in Practice
Oil futures provide exposure to an energy commodityA standardised physical good such as gold, crude oil, wheat, or cocoa..
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Related Terms
Commodities
Precious Metal
A scarce metal commonly held for industrial use, jewellery, or investment.
CommoditiesGold
A precious metal used as jewellery, an industrial input, a reserve asset, and an investment.
CommoditiesSilver
A precious metal with both investment demand and extensive industrial use.
Alternative InvestmentsRoyalty Company
A company that finances producers in exchange for a percentage of revenue or output.