Commodities

Energy consumers are in for a tough winter heating season with sharply higher prices for all energy commodities compared to last winter, the Energy Information Administration (EIA) said last week. Two forecasts released by EIA on Wednesday — a day when heating oil reached a record high, crude oil remained over $52/bbl and natural gas was still more than $7/MMBtu — predict that higher prices will remain the norm over the short term.

TradeSpark LP resumed full electronic trading operations last week for all energy commodities from its back-up offices in New Jersey, only two weeks after its main offices in the World Trade Center were destroyed by terrorists.

TradeSpark LP said it is resuming full electronic trading operations for all energy commodities from its back-up offices in New Jersey, only two weeks after its main offices in the World Trade Center were destroyed by terrorists.

The emergence of online exchanges in both energy commodities and other products has enabled energy companies to shift to an environment where suppliers can expand their reach and receive a wider comparison selection when they make business decisions. A report by Energy Info Source, “Online Exchanges in the Energy Industry,” examines an evaluation of the challenges and the drivers impacting energy e-commerce.

The battle lines are forming as competition for recognition as the top online energy trading platform heats up. The Energy Trading Platform Holding Company (ETPHCo.), comprised of six of the leading power and natural gas trading companies, has entered into a deal to purchase an interest in Atlanta-based IntercontinentalExchange, which claims to be the world’s largest Internet-based, over-the-counter (OTC) marketplace for energy and metals.

From gas and power to clean air credits, bandwidth and plastics,you name it, and EnronOnline now sells it, but out of the plethoraof commodities now trading on the site worldwide, North Americannatural gas still tops the list of most actively traded.

Out of the multiple commodities now trading on EnronOnlineworldwide, including gas, power, oil, coal, pulp and paper, cleanair credits, bandwidth, weather and credit derivatives,petrochemicals and plastics, North American natural gas still topsthe list of most actively traded. The rapidly growing e-commercesite, which Enron claims is the world’s largest with more than $50billion in transactions so far this year, now consumes much morethan 50% of Enron’s wholesale commodity transactions, includingmore than 10 Bcf/d of in the first quarter.

Fresh news means everything in commodities trading and naturalgas traders had their choice of bearish factors to point toyesterday. The one-two combo of the storage surplus and coolerweather put sellers in the driver’s seat once again, and theyreacted swiftly Wednesday evening by pushing the market lower inthe after hours Access trading session. The July contract Thursday,tumbled 10.5 cents to finish at $2.355 in heavy trading.