Energy Trading Encyclopedia

A reference resource for the language and mechanics of global energy trading. From contango and backwardation to physical oil trading mechanics, LNG pricing benchmarks to sanctions compliance frameworks — this encyclopedia covers the concepts and vocabulary essential for understanding how the Swiss energy trading ecosystem operates.

The commodity trading industry uses a specialised lexicon that blends financial market terminology, physical logistics vocabulary, and regulatory language. Many of these terms carry precise technical meanings that differ from their colloquial usage, and several are rooted in trading practices unique to the Geneva and Zug commodity houses. Our encyclopedia is written to bridge this knowledge gap for professionals entering the sector, analysts covering the Swiss trading hub, policymakers engaging with commodity regulation, and researchers studying the structure of global energy markets.

Entries span the full breadth of energy commodity trading: physical oil market mechanics including CIF, FOB, and delivered pricing; paper trading instruments such as futures, swaps, and contracts for difference; LNG commercial structures including destination-flexible cargoes and Henry Hub versus JKM indexation; refining economics and crack spread analysis; and the compliance frameworks governing sanctions, anti-money laundering, and the Extractive Industries Transparency Initiative. Where a term has particular relevance to the Swiss trading ecosystem — such as the role of Swiss inspection firms in cargo verification or the mechanics of transit trade accounting under Swiss tax law — we address the Swiss-specific dimension directly. This encyclopedia is maintained as a living reference by the ZUG OIL editorial desk.