At JPPRO, we provide our clients with the opportunity to trade on spot energy such as Brent, WTI, and Natural Gas, which are crucial resources globally.

You can explore these assets to discover new trading possibilities in the financial market. Energy CFDs are a popular choice for short-term trading, particularly during periods of increased energy consumption.

The prices of these commodities are determined by the supply and demand in the global market. Oil, which is commonly known as “black gold,” is usually priced in US dollars.

Hence, a weak dollar usually leads to an increase in oil prices as the value of the product is directly influenced by the currency’s value. The production of oil by various countries has a significant effect on its supply and pricing.

Imposition of sanctions or increase in production by oil-producing nations may impact the supply-demand gap and lead to a hike in oil prices. For instance, the US sanctions on Iran from the mid-1990s prevented Iranian oil from entering the market, resulting in higher prices. Similarly, lower demand from the EU and China in 2014 caused a sharp decrease in energy prices due to excess supply.

The US government has been accumulating its oil reserves, and if released into the market or utilized domestically, energy prices may decline significantly.