Meteorology for Future Commodity and Energy Markets


Understanding the impact of weather change and its timing in any trading opportunity is very crucial. Traders are required to have an immediate idea of the weather change that might have an impact on the price of their commodity. Companies and individuals depend on weather forecasting as they must predict the market of the commodities they sell. Short-term forecast is more accurate compared to long term forecasting. There is no doubt that the use of meteorologists in energy trading has increased in the last few years. Currently, energy systems have changed at a high rate. Many countries in Europe have shifted to the use of renewable energy to run their economies.

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Renewable energy is much safer since it emits low amounts of carbon. However, the use of renewable energy depends on the weather; therefore, there is a need to understand the impact of weather on the resulting system. When meteorologists are predicting the weather they make sure that the prediction is directly linked to the market trends. In some cases, meteorologists are training companies on finance and trading so that they can comprehend the language and also do the trading work. Meteorologists have analysed the market and the weather conditions in order to come up with gas and power balance. Using the analysis, they are able to provide traders with the appropriate recommendations on the best business strategies. Majority of the weather trading companies provides accurate data to companies dealing with the production of energy. Meteorologists companies are required to provide information as early as possible because traders depend on speed so that they are able to interpret the information that enables them to formulate a trading strategy.

In Europe, the weather is involved in the demand and supply of electricity. The demand for electricity rises in the winter since electricity provides energy for heating residential and commercial buildings. Similarly, during summer the demand for electricity also increases since heat provides the energy for cooling purposes. Weather forecasting can be difficult sometimes because the weather systems that impact rain and cloud cover are minimum scaled in nature. In Europe, weather patterns play a very important role in the generation of solar electricity, hydroelectricity and wind generated power.

In the coming years, there is no doubt that weather forecasting is important in predicting weather conditions in European energy markets, specifically in the supply of electricity and energy prices. In future meteorology companies will be involved in identifying regions that are suitable for exploiting wind resources. These regions must ensure that there is a long term production of wind energy. The fact that energy trading has become a global market over a short duration of time is due to the ability to predict weather in different regions. Wind energy is not easy to predict, therefore, big meteorological companies will be required to provide analysis of the area since they have computing power to come up with a suitable site to exploit wind resources.


In conclusion, when it comes to improving the accuracy of any data it is important for all meteorologists in the world to share information since an issue affecting a certain area might have originated from regions located far away. The entire process requires supercomputers that are able to process data accurately. There is no doubt that weather forecasting plays an important role in the market trends.

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"Meteorology for Future Commodity and Energy Markets." StudyCorgi, 8 Dec. 2020,

1. StudyCorgi. "Meteorology for Future Commodity and Energy Markets." December 8, 2020.


StudyCorgi. "Meteorology for Future Commodity and Energy Markets." December 8, 2020.


StudyCorgi. 2020. "Meteorology for Future Commodity and Energy Markets." December 8, 2020.


StudyCorgi. (2020) 'Meteorology for Future Commodity and Energy Markets'. 8 December.

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