Oil & Gas

The oil & gas industry, also known as the energy sector, relates to the process of exploration, development, refinement of crude oil and natural gas. It is possible to invest in this industry directly and indirectly. An investor can choose to purchase the commodity using the spot market or futures market. Or, the investor can invest by buying shares through the stock market. Oil and gas prices depend on the supply and demand for the commodity. As the demand for the product falls, so does the price. As prices increase, more investment goes into drilling projects and inventing more efficient techniques. So, the supply for oil and gas is price-driven.