Natural gas price movement is a function of supply and demand.
Supply side factors that may affect prices:
- Natural gas production, this has soared with fracking & efficiency.
- Natural gas imported and exported
- Working natural gas in storage
Demand side factors that may affect prices:
- Economic growth and industrial output
- Seasonailty variations in hot and cold weather
- Prices of competing fuels such as coal, heating oil & renewables
- Natural gas ETF purchases such as UNG
Henry Hub Natural Gas (NG) Futures
NYMEX (CME) Natural gas futures prices are based on delivery at the Henry Hub in Louisiana. Market participants can efficiently hedge risk or speculate the highly volatile natural gas price.
Henry Hub natural gas futures are the third-largest physical commodity futures contract in the world by volume. Henry Hub is widely used as a national benchmark price for natural gas.