Natural Gas Jun '18 (NGM18)
|Tick Size||0.1 cent per MMBtu ($10.00 per contract)|
|Daily Limit||$1.00 per MMBtu ($10,000 per contract)|
|Contract Size||10,000 MMBtu (million British thermal units)|
|Trading Months||All Months|
|Trading Hours||5:00p.m. - 4:00p.m. (Sun-Fri) (RTH 8:00a.m. - 1:30p.m.) CST|
|Value of One Futures Unit||$10,000|
|Value of One Options Unit||$10,000|
|Last Trading Day||Trading terminates three business days prior to the first calendar day of the delivery month|
Natural gas is a fossil fuel that is colorless, shapeless, and odorless in its pure form. It is a mixture of hydrocarbon gases formed primarily of methane, but it can also include ethane, propane, butane, and pentane. Natural gas is combustible, clean burning, and gives off a great deal of energy. Around 500 BC, the Chinese discovered that the energy in natural gas could be harnessed. They passed it through crude bamboo-shoot pipes and then burned it to boil sea water to create potable fresh water. Around 1785, Britain became the first country to commercially use natural gas produced from coal for streetlights and indoor lights. In 1821, William Hart dug the first well specifically intended to obtain natural gas and he is generally regarded as the "father of natural gas" in America. There is a vast amount of natural gas estimated to still be in the ground in the U.S. Natural gas as a source of energy is significantly less expensive than electricity per Btu.
Natural gas futures and options are traded at the CME Group. The CME natural gas futures contract calls for the delivery of natural gas representing 10,000 million British thermal units (mmBtu) at the Henry Hub in Louisiana, which is the nexus of 16 intra-state and inter-state pipelines. The contract is priced in terms of dollars per mmBtu. CME also has basic swap futures contracts available for 30 different natural gas pricing locations versus the benchmark Henry Hub location. Natural gas futures are also listed on the ICE Futures Europe exchange.
Prices - CME natural gas futures (Barchart.com symbol code NG) on the nearest-futures chart in 2014 rallied to a 6-year high in February 2014 but then traded lower the rest of the year to close the year down -31.7% at $2.889 per mmBtu, which was only moderately above the record low of 1.902 posted in April 2012.
Supply - U.S. recovery of natural gas in 2013 (latest data available) rose +2.1% to a record high of 30.167 billion cubic feet. The top U.S. producing states for natural gas were Texas with 29.4% of U.S. production in 2013, Louisiana with 9.2%, Wyoming with 7.2%, Oklahoma with 8.4%, and New Mexico with 4.8%. In 2014 the world's largest natural gas producers were the U.S. with 2,276,915 terajoules and Russia with 1,732,577 terajoules of production.
Demand - U.S.- delivered consumption of natural gas in 2013 rose +2.0% yr/yr to 23.879 billion cubic feet, of which about 34.1% was delivered to electrical utility plants, 31.3% to industrial establishments, 20.7% to residences, and 13.8% to commercial establishments.
Trade - U.S. imports of natural gas (consumed) in 2013 fell -8.1% yr/yr to 2.883 billion cubic feet, down from the 2007 record high of 4,607 billion cubic feet. U.S. exports of natural gas in 2013 fell -2.9% yr/yr to 1,572 billion cubic feet, below last year's record high of 1,618 billion cubic feet.
Articles from the Commodity Research Bureau (CRB) Commodity Yearbook. The single most comprehensive source of commodity and futures market information available, the Yearbook is the book of record of the Commodity Research Bureau, which is, in turn, the organization of record for the commodity industry itself. Its sources - reports from governments, private industries, and trade and industrial associations - are authoritative, and its historical scope is second to none. Additional information can be found at www.crbyearbook.com. More commodity data from Commodity Research Bureau.
More commodity data from Commodity Research Bureau.