What is the name of natural gas in futures?

Natural gas is called NG at the delivery date.

Natural gas is an important energy source, which can be used in heating, refrigeration, power generation and other fields. It also provides power for the manufacturing industry and is a key component of industrial products such as fertilizers and medicines. Today, natural gas is one of the most traded commodities in the world.

1. Natural gas delivery date It is the fourth largest energy source in the United States and a rich resource in North America. Natural gas plays an indispensable role in maintaining the power demand of industrial and household consumers. Natural gas futures contracts are traded in the NYMEX York Mercantile Exchange, providing consumers and energy producers with a financial tool to hedge price risks in this turbulent market. Similarly, these exchanges also have trading contracts and are also investment tools for speculators.

2. Speculators trade futures contracts. Traders hope to profit from the price difference that rises and falls with the change of supply and demand, and use appropriate strategies to become the most suitable type of natural gas futures trading. The latest development of natural gas futures was first proposed by the New York Mercantile Exchange in 1990. This new market tool was created by 1978 American Natural Gas Policy Act, which relaxed the control of natural gas industry and opened up free market competition. Natural gas futures have become the fastest-growing futures contract in the history of the New York Mercantile Exchange. Although other countries in the world have incorporated natural gas into the energy plan of the United States, the development of natural gas futures outside the United States is slow, mainly because the foreign natural gas industry is strictly regulated. Russia, another major natural gas producer, strictly regulates its natural gas market, artificially lowering domestic consumption prices and raising export prices. In a highly regulated market, futures are unnecessary because price fluctuations and risks are minimal. Natural gas futures refers to the purchase or sale of a certain amount of natural gas at a specific price on a specific date in the future, that is, 654.38 billion British thermal units (BTU). BTU refers to the amount of natural gas required to heat one pound of water at a time. Natural gas is about 1027 BTU per cubic foot (0.03 cubic meter).

3. The contract price of natural gas is based on the current delivery price of Eiras Henry Center in Louisiana. Henry Hub pipeline system is the central processing point where 16 natural gas pipelines meet, extracting natural gas from several major natural gas producing areas to serve Texas and Gulf Coast. As a large amount of natural gas flows through this area, the price of Henry Hub determines the price of the whole North American natural gas market, and natural gas is one of the main energy sources for heating domestic and commercial buildings.

4. Natural gas demand is seasonal, reaching its peak in winter and decreasing in summer. All these companies assess their exposure to the natural gas market according to these seasonal demand trends. Severe weather conditions such as hurricanes will also seriously damage the price of natural gas, destroy processing facilities and affect the transportation of fuel to the market. The government's energy policy will also affect the demand for this resource. Legislation to promote green energy may have a positive price impact on the market because natural gas is regarded as a clean fuel. Another major factor affecting natural gas futures prices is oil. Because oil and natural gas compete with each other as energy resources, and they are used in very similar ways, the fluctuation of oil commodity prices will also cause price pressure on the natural gas market.