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UNREFINED ENERGIES
In this section we cover crude oil and natural gas. Crude oil and natural gas are both
unrefined fossil fuels straight from the ground. Crude oil is extracted from the ground with oil wells and sent to a refinery
where the hydrocarbons are separated during distillation and other chemical processes. Natural gas does not require refining
in the sense crude oil does, but it does require cleaning, due to the presence of other gases and liquids. Futures contracts
on the regulated commodity exchanges are a way to get positioned to trade unrefined energies. The NYMEX
crude oil and natural gas futures markets stand alone in its reliable price transparency and market safeguards that protect
all participants. Trading is conducted as an open auction, price discovery is straightforward and exclusive of brokerage fees,
price dissemination is virtually instantaneous, and, at the end of the day, all positions are marked-to-market and obligations
settled in cash. There is no counterparty credit risk since the Exchange and its clearinghouse, which is composed of some
of the most highly regarded firms in the financial services industry, stands on the other side of every deal.
Click here to contact a licensed commodity broker to discuss market opportunities.
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