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- Most natural gas futures are bought and sold in the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). Futures contracts allow participants to manage their exposure to market volatility by locking in a price today for a future purchase or a future sale of a physical commodity.
www.eia.gov/todayinenergy/detail.php?id=62605
Natural Gas TAS spreads (NGT) are now available on NYMEX in any spread combination for the first 12 consecutive monthly contracts. Global benchmark Natural Gas is in the top three of the world’s largest physical commodities futures contracts, with use growing in South America, Asia and Europe.
- Natural Gas: from Pipelines to Portfolios - CME Group
Natural gas is the third largest physical commodity futures...
- Natural Gas: from Pipelines to Portfolios - CME Group
Jul 29, 2024 · Why do people trade natural gas futures contracts? The first natural gas futures contracts began trading at NYMEX in 1990, allowing producers, consumers, and financial traders to hedge against price volatility at the Henry Hub in Louisiana.
- What Is Henry Hub?
- Understanding Henry Hub
- Importance of Hub Pricing
- Henry Hub and Liquid Natural Gas
Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange(NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States. The hub connects to four intrastate and nine interstate pipeli...
The Henry Hub pipeline is the pricing point for natural gas futures on the New York Mercantile Exchange. The NYMEX contract for deliveries at Henry Hub began trading in 1990 and is deliverable 18 months in the future. The settlement prices at Henry Hub are used as benchmarks for the entire North American natural gas market and parts of the global l...
Henry Hub is an important market clearing pricing concept because it is based on the actual supply and demand of natural gas as a stand-alone commodity. Other natural gas markets like Europe have fragmented hub pricing points. This means natural gas prices are often indexed to crude oil, which can have very different supply and demand factors affec...
Henry Hub is also used in delivery contracts for LNG on a global basis, despite being a spot price for natural gas that is very specific to the North American gas market. Some global gas producers like Qatar and Australia prefer to base the pricing mechanism of their natural gas deliveries on spot prices rather than indexing to the price of oil. Th...
Mar 25, 2015 · How Are Natural Gas Futures Traded? A futures contract for natural gas can be traded on the NYMEX, Intercontinental Exchange ( ICE), or Multi Commodity Exchange (MCX). The NYMEX is the...
Natural gas futures contracts may oc-casionally involve the actual physical delivery of natural gas, but more fre-quently futures contracts are traded for a different contract or the obligation is settled through a cash payment. As the date of the futures contract gets closer, the financial and physical markets converge. To facilitate ...
Oct 28, 2023 · Natural gas is the third largest physical commodity futures contract in the world by volume. Users can tailor hedging and trading strategies with (a) outright trades, (b) calendar spreads, (c) inter commodity spreads, and (d) American, European, or daily options.
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Sep 27, 2024 · Natural gas trading involves the buying and selling of natural gas contracts in regulated markets to manage supply and price risks. This type of trading allows producers, consumers, and speculators to secure prices for future deliveries, thus providing a hedge against market volatility. The process is intricate, requiring a deep understanding ...
