Saturday, October 18, 2008

Energy future market



The history of the international raw material market was marked by attempts of a producer’s corporations, with speculative operations and the international institutions to keep steady prices.

With the evolution of high costs of the raw materials became, thus, an essential concern of the governments and international organisms.

The world-wide economy was deeply marked by the actions of the OPEP, which, volatilizing prices became a new and excellent tool to the oil financial market.

The futures markets serve to a sufficiently useful economic intention: to supply a form by which the inherent risks to the economic activity - as markets demand, interest rates and taxes - can be transferred of the physical and legal people whom they desire to prevent them it those that may use assume them.

The risk that’s this economic activity has can be divided in two components: the intrinsic risk to the business in itself and the related risk the external factors.

1 comment:

Feyo said...

We must think with more criteria about the voluntary reduction of consumption of the diverse products that withholding one determined consumption standard and that supplies royalties the great wasting industry of energy so that diversifies its investments, diminishing the risk. Such is perfectly compatible with the functioning of financial markets that however will have to adopt reforms for a new form.