What Factors Affect the Price of Natural Gas?

The natural gas market is affected by four primary factors: weather, natural gas inventory, natural gas production, and what’s occurring in the market place with other fuels – primarily oil. Changing supply/demand fundamentals, unpredictable weather, the emergence of a global liquid natural gas market, and dynamic natural gas storage data have all contributed to the recent increase in natural gas volatility. The market ebbs and flows much like the stock market. Anyone of these factors can have great influence on how natural gas is priced.