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  • An Analysis Of Spot And Futures Prices For Natural Gas - Citizensutilityboard

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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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  3. Review the introductory section that outlines the purpose of the analysis, and ensure you understand the context of the data presented.
  4. Fill in the economic fundamentals section, carefully analyzing the provided data and documenting your insights about demand, supply, and market conditions.
  5. Complete the sections regarding market structure and the roles of speculation and manipulation, incorporating relevant findings from the analysis.
  6. Summarize your conclusions and recommendations based on the analysis you have completed, making sure to highlight key aspects that stakeholders should consider.
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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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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
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
Privacy Notice
Legal Hub
Content Takedown Policy
Bug Bounty Program
About Us
Blog
Affiliates
Contact Us
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
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 WorkFlow
DocHub
Instapage
Social Media
Call us now toll free:
+1 833 426 79 33
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