What is Energy Trading?
Energy manifests its legal suitability (legal attachment) through the ownership by certain entities of the sources and means of obtaining and transmitting the corresponding energy. The energy market is formed in the process of functioning of the fuel and energy complex of the country as a system of related energy industries, enterprises, and organizations, based on the unity of their functions of prospecting, exploration, extraction (production), processing, transformation, storage, transportation, distribution, and consumption of energy and energy resources, to meet the needs of population and economy of the country with energy resources. Since energy does not exist without a source and its carrier, energy markets refer to energy itself and the markets of the corresponding energy carriers.
Energy markets are an organizational and economic mechanism that ensures the functioning of the sphere of circulation of energy resources, organized according to the laws of commodity production. In their turn, energy resources are nothing more than a material carrier of energy, converted into conditional fossil fuels as a unit of energy quantity in a specific energy resource during FEC entities’ fuel and energy balance planning. Energy resources, representing carriers of various types of energy, define the specific character of social relations subject to energy. Oil, natural gas, gasoline, and fuel oil are best known.