Factors Affecting Natural Gas Prices

Like any other commodity, natural gas is influenced by the forces of supply and demand. An understanding of both supply- and demand-side factors can help investors better evaluate fluctuations in natural gas prices to better gauge future market trends. Natural gas prices have fluctuated wildly over the past three months. While this is partly influenced by the overall state of the energy sector, seasonal influences have contributed to the dramatic rise – and fall – in natural gas prices. An expected warm spell in February has placed further downward pressure on the commodity. Learn here about how an interest rate hike can affect commodities.