Market Overview: Natural Gas (NG)

The United States, Russian Republics, Canada, Mexico, Italy and Venezuela are the largest producers of Natural Gas. Virtually all countries that produce natural gas consume it domestically. In recent years, more efficient means to find and extract Natural Gas have been developed which will certainly affect supplies for this finite resource in the coming years. It should also be noted that it is extremely difficult to transport Natural Gas to the U.S. from countries other than Canada and Mexico. Therefore, price levels should increase within the U.S. as supplies decrease and demand levels increase.

Seasonal Overview:

This clean burning fuel is used for both heating and electric generation purposes. In the winter months, residential demand is high, while in the summer months industrial demand is high. This constant demand suggests little or no seasonal tendency for natural gas, unlike other fuel contracts.

Natural Gas: (High: Oct//Low: Mar or Jul) Demand has tended to rise into Oct-Nov as industry builds inventory to meet cold-weather demand.

Chart courtesy of Moore Research Center, Inc.