#NG.f (Natural Gas, Current Month). Exchange rate and online charts

#NG.F

#NG (Natural Gas) is one of the key and most popular market assets which is mainly traded on the New York Mercantile Exchange NYMEX. The most popular way to trade natural gas today is to use futures contracts.

Factors affecting NG futures dynamics

Natural gas prices are largely a function of market supply and demand. Due to the fact that there are a limited number of short-term alternatives to natural gas as fuel for heating and electricity generation during periods of high demand, changes in supply or demand over a short period can lead to significant price changes.

The demand-related factors include weather and economic conditions, as well as oil prices. Winter weather provides a huge boost to heating demand, while summer weather increases demand for cooling. This, in turn, increases power plants’ demand for natural gas.

The supply-related factors are natural gas production, net imports, and storage inventory levels. An increase in supply results in lower prices, while a decrease in supply tends to drag prices up.

Economic conditions as well as international politics also drive demand for natural gas, especially from producers.

How to trade Natural Gas?

The asset’s trading activity peaks in the US session, although it is traded on an around-the-clock basis. Natural gas traders should pay attention to EIA's Weekly Natural Gas Storage Report released on Thursdays at 10:30 am ET.