Overview

Energy commodities include a number of different oil and gas products, such as natural gas and various grades of crude oil. These resources are critical to every day life, and are among the most visible commodities to many consumers. They are also among the most widely-traded commodities.

Energy commodities have appeal from an investment perspective because they are used so widely in an number of industrial applications, and can see significant price appreciations in relatively short periods of time. Energy commodities can also serve as a hedge against personal consumer expenditures, since rising oil prices translate into higher prices of gasoline and various goods that require long distance transport. That makes energy commodities a nice hedge against inflation as well, as increases in oil and gas prices tend to ripple across the economy.

There are a number of ways to invest in both baskets of energy commodities and specific resources, including liquid options and futures contracts, ETFs and ETNs, and stocks of companies in the energy sector.

Energy Types

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