Is Nymex the same as Henry Hub?
Is Nymex the same as Henry Hub?
Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX). The hub is owned by Sabine Pipe Line LLC and has access to many of the major gas markets in the United States.
What is the Nymex natural gas?
The NYMEX, or New York Mercantile Exchange, is an organized market where tradable commodities—such as contracts on natural gas—are bought and sold. The NYMEX is the world’s largest exchange for energy products.
What are Nymex futures?
The New York Mercantile Exchange (NYMEX) is a commodity futures exchange located in Manhattan, New York City. It is owned by CME Group, one of the largest futures exchanges. Each market operates under different trading mechanisms, which affect liquidity and control.
What is the contract size for natural gas futures?
Natural gas futures contract specifications
|Exchange, Product Name, Product Code||New York Mercantile Exchange (NYMEX), Henry Hub Natural Gas Futures, NG|
|Contract Size||10,000 mmBtu|
|Minimum Tick Size and Value||0.001, worth $10.00 per contract.|
What is Henry Hub price today?
|Natural Gas (Henry Hub)||5.18||USD per MMBtu|
|Ethanol||2.22||USD per Gallon|
|Heating Oil||59.97||USD per 100 Liter|
|Coal||171.25||USD per Ton|
Is natural gas cheap or expensive?
Yes, natural gas offers an affordable source of energy. According to an IHS study, 800 trillion cubic feet of natural gas can be developed for around $3 per cubic foot, and America consumed 27.5 trillion cubic feet of natural gas in 2016.
What is basis in natural gas?
“Basis” is a financial term and is associated with the physical transportation of a commodity from a trading hub to another point. With natural gas, basis is the contractual cost of delivering your natural gas to your local utility company from the NYMEX natural gas trading point at Henry Hub, LA.
Do oil futures affect gas prices?
Causes. Like most of the items you buy, supply and demand affect oil prices. Oil price futures, traded on the commodities exchange, also affect oil prices. These prices fluctuate daily, depending on what investors think the price of oil will be going forward.
What are WTI futures?
WTI Crude Oil futures, ticker symbol CL, is the most actively traded crude oil futures contract, with more than 1 million contracts traded every day. WTI is a light, sweet crude oil, which refers to its low density and low sulfur content, and is often used for conversion to gasoline and diesel fuel.
What is the futures symbol for natural gas?
According to Investopedia , a natural gas futures contract has 10 specifications: Ticker Symbol: NG on the New York Mercantile Exchange (NYMEX), ENG on the electronic Chicago Board of Trade (eCBOT)
How do I buy natural gas futures?
The most direct method of investing in natural gas is by trading futures contracts on one of the designated commodities exchanges. On the New York Mercantile Exchange (NYMEX), the preeminent exchange for energy products, you can buy and sell natural gas futures and options.
What is a natural gas forward curve?
The forward curve is essentially a function graph that defines the prices at which a contract for future delivery can be concluded today. It is also often referred to as “the forward strip”. When natural gas forward curve is upward-sloping, the market is in “contango”.
What is the price of natural gas per gallon?
Let’s assume the cost for natural gas is $15.00 per 1,000 cubic feet. This means that $15.00 will purchase approximately 1.03 million BTU’s of energy. This would be equivalent to 11.26 gallons of propane. At $2.50 per gallon of propane, natural gas would be a more cost effective energy solution.
What are natural gas futures?
Natural Gas futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of natural gas (eg.
What is gas futures?
Gasoline futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of gasoline (eg.