Futures prices for natural gas vary from day to day and are also based on the delivery date of the contract. Natural gas futures trade at the New York Mercantile Exchange. Futures prices listed on indexes and real time quotes use the unit dollars per million British thermal units.
Natural gas is priced in accordance with the market supply and demand factors. The three most important factors that affect the price include the amount of gas being purchased, the transportation cost and the amount of processing required to prepare the gas according to the buyer’s needs.
The average price for natural gas fluctuates quite a bit from state to state, with the states on the East Coast normally paying quite a bit more than most others. In general, states that either produce large quantities of natural gas or are served by major gas pipelines, such as Utah, Alaska, Colora
The current market price of natural gas can be found on Nasdaq.com. The website provides a graph showing prices changes for a time frame of three months. As of October 19, 2015, the end of day price quote for natural gas is 2.442.
The primary driver of natural gas prices is a spike in demand when available supplies are low. For instance, natural gas use peaks over the winter due to its use as a heating fuel. Weather and refining capacity problems can also lead to short-term increases in natural gas prices.
The laws of supply and demand affect the price of natural gas. There are few available short-term alternatives to the product for purposes such as heating and the generation of electricity. Accordingly, when the supply of natural gas goes down, the demand increases, forcing prices to rise.
To determine the current market price of natural gas, visit reliable online resources such as Nasdaq.com or the U.S. Energy Information Administration. Nasdaq.com features a chart with end-of-day commodity futures price quotes for natural gas, and the U.S. Energy Information Administration offers ov
Some factors that influence future gas prices are political unrest, weather, exchange value of the dollar, OPEC and government legislation. Gas prices are extremely volatile because many several factors can cause the prices to decrease or increase.
Fluctuations in oil prices are driven by events that disrupt supply and distribution, including geopolitical conflict and weather-related catastrophes, states the U.S. Energy Information Administration. Forecasting oil prices must attempt to account for these factors.
Crude oil, and by extension, gasoline, is a non-renewable resource; therefore eventually, the cost of gasoline will inevitably rise due to scarcity. A vast number of factors play into the cost of gasoline. Experts can only speculate whether gas prices will rise or fall.