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Natural Gas Futures TradingTicker Symbol: NGExchange: NYMEX * Hours of Trading: open outcry 9:00 Am to 2:30 PM Eastern Standard Time Unit/Contract Size: 10,000 mmBtu ( million British thermal units, or gigajoules) Price Quote: Dollars and cents/mmBtu Min. Price Change: $.001 per mmBtu or $10.00 per contract Max Price Fluctuation: $3.00 per mmBtu or $30,000 per contract Months of Trading: Adding twelve years to the present mo’s of Jan through Dec Last Trading Day: At conclusion of three business days before the first calendar day of delivery month * In addition to NYMEX (beginning in 1990)
natural gas futures trading occur at the NBP, the national Balancing
point at ICE, the
International Petroleum exchange. Trades for natural gas are electronic
at the IPE. Natural gas futures trades also occur at CME – Chicago
Mercantile exchange, electronically.
Total energy consumed in the U.S. is comprised of approximately 25% natural gas. A fossil fuel, gas is mainly the hydrocarbon methane - which resides in coal beds, natural gas fields and oil reservoirs. Some of the more traditional major uses include industrial power generation, heating & cooling, the making of paint, plastic and glass and fertilizer products. Natural gas can also be used in the making of hydrogen, possibly an alternate energy source - in compressed form for use in hydrogen vehicles. Heralded for its clean burning abilities, it results in less contaminants than either oil or coal. Air quality and environmental standards may affect natural gas demand and so trading of natural gas futures. Major reserves are located in Qatar, Russia, the United States, Canada, Mexico and the North Sea. However, recovery techniques and economies play a vital role; for example in the case of horizontal drilling that may be required among north Appalachia. Where substantially great costs may be incurred so as to bring vertical drilling to remove the gas from what is believed to be, vast reserves. Moreover, like with heating oil, natural gas futures are affected by oncoming weather that can stimulate price fluctuations. Not only from hotter and colder temperature patterns, but from potentially destructive storms that threaten reserves . The largest consumers of natural gas by far are Russia, the United States and the European Union. The United States is the main consumer of its output, while Russia, who controls a state owned monopoly has in prior years wielded its wealth of gas as a political maneuver, even shutting off parts of Europe’s source of home heating. |
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