BFX Natural Gas Futures
Natural Gas is widely used in power generation and to heat residential and commercial premises in the US. Natural Gas is also used in the manufacturing sector as an important source of energy. Other uses include mining, drilling operations, heaters and dehydrators. Natural Gas is also used in the form of Compressed Natural Gas for powering vehicles.
Natural Gas prices are predominantly impacted by seasonal variations in demand. Natural Gas inventory levels in the US markets peaked at 3,929 billion cubic feet (bcf) during Nov 2012. The inventory levels have increased over the last few years due to innovative production techniques such as “hydraulic fracturing” (fracking) on shale formations. As on the 23rd of August 2013, spot Natural Gas prices were at USD 3.50 per million British thermal units (mmBtu).
The BFX Natural Gas Futures (Symbol: BFXNG) futures contract enables market participants to mitigate risk against volatile Natural Gas prices. The contract size is 2,500 mmBtu and is quoted in US dollars and cents per one mmBtu. The BFX Natural Gas futures are aligned with the prices in the US markets, so as to provide a uniform price risk management strategy for market participants. The final settlement price is based on the equivalent futures contracts traded in the New York markets.
BFX Natural Gas Futures product booklet, please click here
BFX Natural Gas Futures contract specifications, please click here