A commodity can be described as anything of value, but in terms of global economics, commodities are usually raw materials or ingredients that go into making products. Oil and gas are two examples of commodities, and they can be traded in the financial markets as stocks in companies or through other stores of value. The commodities market is where people and businesses trade in the value of commodities, and it is a part of the larger stock market as a whole. Some traders and investors only deal in commodities, whereas others use commodities as merely a part of their portfolios.

Understanding Data as It Relates to Commodities

Commodity data is all the data gathered about various commodities. This can be gathered from numerous sources, including Internet of Things (IoT) technologies. IoT in oil and gas, for example, may be comprised of the various import and export scanners installed at refineries. Additionally, these technologies may include machines that measure the values of commodities as they pass through processing equipment.

Using technologies that take advantage of IoT in oil and gas, companies can provide traders and investors with commodity data regarding how much oil and gas has entered and exited a facility. They can also provide accurate data about processing capacity that could impact investments. This can then help traders and investors to make sound decisions about their commodities holdings.

Archiving and Securing Commodity Data

Like with other forms of important and sensitive data, commodity data needs to be archived and secured. Additionally, some commodities producers may have specific regulations regarding how data must be handled. In some cases, a commodities producer will need to adhere to federal or state regulations, and global companies may have international regulations to follow.

Generally speaking, commodities data will need to be made available to regulators and investors if a commodity is traded on a public exchange. This has to do with federal securities and exchange regulations that govern publicly traded stocks, securities, commodities and other investments.

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Emily Clarke is providing info about a single platform for your oil and gas software solutions. You can find her thoughts at oil and gas software blog.