Oil/Energy Trading superior to Prop Trading?
It seems to me that a lot of people these days think that trading oil and energy is better than trading equities or fixed income and I'm not sure why. I am not familiar with oil trading companies and their business model. Can someone shed me some light on the matter?
What exactly do oil trading firms and other energy trading firms do and how do they make money? Do they just buy physical oil, store them and sell them at a higher price and make money off the spreads? Do they take directional bets on the price of oil? Do they make markets in the commodities futures market?
Thanks a lot