The history of gas prices

The more you understand about any subject, the more interesting it becomes. As you read this article you'll find that the subject of gas price history is certainly no exception.

The history of gas prices is a powerful indicator of future trends. Gas market professionals use price history to gain invaluable insight into the gas markets, regardless of whether they buy or sell physical gas or deal with gas financial futures. Professionals undertake a comparison of the current and historical situations, along with the factors that give rise to these, and determine the particular direction of gas price movements.

In the commodities futures markets, one can also witness the presence of a wide variety of gas derivative instruments that help to enhance financial performance in physical markets. These instruments are used by professionals to derive information that enables producers and consumers to seek precautionary measures against sudden price fluctuations, apart from serving as powerful vehicles of speculative investment.

Gas prices fluctuate rapidly. They vary remarkably from one country to another, and even within one country. A March 2005 estimate put Amsterdam in the Netherlands, as having the most expensive gas, at $6.48 per gallon. Oslo, Norway comes second, and Milan, Italy, is placed third in terms of having the most expensive gas. Amongst the places that have the cheapest price of gas, Caracas, Venezuela tops the list with a recorded price of $0.12 per gallon, followed by Lagos, Nigeria, at $0.38 and Cairo, Egypt, at $0.65.
The best time to learn about gas price history is before you're in the thick of things. Wise readers will keep reading to earn some valuable gas price history experience while it's still free.

Gas industry professionals use several tools to keep track of the wide fluctuation in gas prices. They use instruments such as price history to analyze future prices. While calculating future prices, gas professionals also take into account the role of the weather, since it plays an important role in the price of gas. The recent case of high gas prices in the US in October 2005, for example, throws light on the volatile gas pricing scenario.

Price histories also help chart out particular trends in gas prices, and they are correlated and compared to gas instruments in the energy or other financial markets. Gas price history has emerged as a widely accepted analytical tool to understand market fluctuations in gas. Combined with an analysis of seasonality, gas price histories can provide a powerful look into the future.

Take time to consider the points presented above. What you learn may help you overcome your hesitation to take action.