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An Analysis of Spot and Futures Prices for Natural Gas: The Roles of Economic Fundamentals, Market Structure, Speculation, and Manipulation Robert J. Shapiro and Nam D. Pham August 2006 S O N E C.

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Natural Gas Futures Discussions Crude Oil WTI Futuresderived80.35-0.36Brent Oil Futuresderived84.77-0.16Natural Gas Futuresderived2.142+0.036Gold Futuresderived2,037.00-1.20Silver Futuresderived25.09-0.0112 more rows

Natural gas futures can be used for hedging or speculating and can be traded nearly 24 hours per day, 6 days per week Trading natural gas futures allows hedgers to manage risk within the highly volatile natural gas price, which is driven by weather-related demand.

The spot price of a commodity is the current cash cost of it for immediate purchase and delivery. The futures price locks in the cost of the commodity that will be delivered at some point other than the present—usually, some months hence.

The answer to the second question is that when we apply a unit root test that allows for heteroskedasticity and two structural breaks, natural gas spot and futures prices are predictable.

Spot market (natural gas): A market in which natural gas is bought and sold for immediate or very near-term delivery, usually for a period of 30 days or less.

Electricity spot prices reflect the current market cost determined by supply and demand, whereas electricity futures prices predict the cost of electricity at a future date. Understanding the distinction between these two pricing models is fundamental for effective electricity market analysis.

Futures prices rise above spot prices because investors become comfortable paying more for the future assets. However, commodity and volatility funds are structured to buy short-term futures.

The main difference between spot prices and futures prices is that spot prices are for immediate buying and selling, while futures contracts delay payment and delivery to predetermined future dates. The spot price is usually below the futures price.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232