Wholesale Energy

Wholesale energy is the sale of energy products in large quantities, typically to commercial or industrial customers. The term is often used to refer to the sale of electricity, natural gas, or other fuels, but it can also include the sale of other energy products, such as coal or petroleum products.

Wholesale energy markets are typically organized into two tiers: the spot market and the futures market. The spot market is where energy products are bought and sold for immediate delivery. The futures market is where energy products are bought and sold for future delivery.

The spot market is typically more volatile than the futures market, as prices can fluctuate significantly based on current supply and demand conditions. The futures market is typically less volatile, as prices are based on expectations of future supply and demand conditions.

Wholesale energy prices are influenced by a number of factors, including:

* The supply and demand of energy products
* The cost of production
* The cost of transportation
* The weather
* Government policies

Wholesale energy prices can have a significant impact on the cost of goods and services for businesses and consumers. For example, a rise in wholesale energy prices can lead to higher costs for businesses that use energy to produce their products or services. This can lead to higher prices for consumers.

Wholesale energy markets are important to the economy, as they provide a way for energy products to be bought and sold in large quantities. These markets help to ensure that energy products are available when and where they are needed, and that prices are fair and competitive.