Just what causes the ups and downs in natural Shared by:
iyl22985 PRICE VOLATILITY IN THE NATURAL GAS MARKET – “WHAT ARE
THE FACTORS?” February 28, 2003 Just what causes the ups and
downs in natural gas prices? What are the factors anyway?
Sometimes it’s just one thing and at other times it’s a mix. CGA
provides this briefing to help you understand some of the
reasons for natural gas pricing. Ottawa (February 28, 2003) –
The commodity price of natural gas is determined in the
marketplace and is not regulated. There is a single North
American market for natural gas. The key factors that affect the
price of natural gas include supply, demand and storage levels
in North American gas markets. Typically, prices increase during
the winter months when demand is greater and decrease during the
summer months when demand is lower. Natural gas prices are also
influenced by oil prices to the extent that there is competition
between oil and gas, particularly in industrial markets and
electric utility markets (fuel to prod