NYMEX 101: What is The Natural Gas Futures Market?

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Performance of NYMEX Henry Hub Natural Gas Front Month Futures - Last 6 Mos.
We often write about the price of natural gas because it is the price that drives everything else. But there is no one "price" for natural gas. Natural gas is sold along pipelines at many different locations. However, the NYMEX Henry Hub "front month" futures price is often used as a proxy for "the price" of natural gas. But what is a futures vs. spot price? And, what is the natural gas futures market? The U.S. Energy Information Administration (EIA) helps us answer those questions in a recent post.

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