Author Archives: Claudia Soria
Brent Crude
Brent crude is a crude oil sourced from the North Sea (between Great Britain and Scandinavia). Brent crude is a light sweet crude oil, though not as light or sweet as the West Texas Intermediate (WTI). It contains approximately 0.37% … Continue reading
Henry Hub Natural Gas
Henry Hub is the pricing point for natural gas futures contracts traded on the NYMEX. It is a point on the natural gas pipeline system in Erath, Louisiana. Spot and future prices set at Henry Hub are generally seen to … Continue reading
Short the Market
Having a bearish stance. Engaged in a bearish option or futures spread. Opposite of long the market.
Long the Market
Having a market bullish stance. A speculative strategy that profits from an increase of prices. Opposite of short the market.
Short
In commodities trading vocabulary short is synonymous with sell. If a trader sells futures or options, he is going short. Opposite of long.
Long
In commodities trading vocabulary long is synonymous with buy. If a trader buys futures or options, or owns a cash commodity, she is going long. Opposite of short.
MMBTU
1 MMBtu is equal to 1 million BTU (British Thermal Unit). Natural gas is measured in MMBtu’s. 1 MMBtu = 28.263682 m3 of natural gas at defined temperature and pressure. 1 standard cubic foot of natural gas yields ≈ 1030 BTU (between 1010 … Continue reading
Natural Gas
Natural gas is a gas composed mainly by methane. Before it can be used as fuel it must undergo a process of purification in which other elements such as ethane, propane, butane, pentanes, and higher molecular weight hydrocarbons, elemental sulfur, … Continue reading