Natural Gas
Consisting chiefly of methane, a clear and odorless gas, natural gas is extracted from large underground reservoirs that may also include petroleum. Because methane combustion results in only carbon dioxide and water, it is regarded as the most environmentally sensitive fossil fuel.
The standard trade quantity for US markets is a multiple of 10,000 MMBTU’s (a unit of heat). Market liquidity is limited for contracts that are more than 36 months away. NYMEX Natural Gas futures and options are physically settled at Henry Hub, Louisiana, or financially settled.
Futures
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