A Study On Commodity Market Volatality With Special Reference To Natural Gas

Abstract

According to reports, India currently accounts for 0.4 % of global natural gas reserves and approximately 1% of production. The main obstacles to creating gas demand and boosting gas consumption are domestic production difficulties, issues in the pricing and allocation of gas imperfect regulatory practices and inadequate infrastructure. Any investor or traders must certainly consider technical analysis as a tool whether to buy the stock at a particular point of time through it is fundamentally strong. The study is purely based on secondary sources available from the website. Meeting the world's energy demand in 2040 will require a diverse energy mix. Natural gas will be a major game changer with fewer emissions, flexibility and abundance. Growth in the natural gas market is become
decreasing important in international trade, especially after the recent financialization in commodity markets. Motivated by the low volatility and time-varying nature in natural gas futures prices, understanding the pricing dynamics of natural gas is essential for risk management. Find week evidence of negative jumps in the natural gas market and lower jump intensity in a more volatile period. This result has important implications for many financial analysis and policy institutions that have used commodity futures prices to predict movements in spot prices.