Natural Gas

A fossil fuel of mostly methane, priced at hubs such as Henry Hub and violently seasonal.

Overview

US benchmark futures at Henry Hub settle per million British thermal units with winter heating peaks and summer cooling peaks from power demand. Shale made the United States the top producer, and growing LNG exports now link Henry Hub to Europe and Asia, especially after 2022 when Russia cut pipeline flows and Dutch TTF prices spiked to several times US levels. Storage injections and withdrawals frame the annual cycle, and small shifts in heating degree days swing demand by percentage points, so forecasts move the market daily. Basis differentials across hubs track pipeline capacity, and dry gas producers hedge output with futures and options against seasonal collapse.