Will gas become available in spot, futures markets
A natural-gas spot market would conceivably operate the same as for crude oil, with 5 to 15% of total supply involved and trends reflected in spot prices. A futures market for gas would operate as a paper market in the same manner as agricultural commodities and metals. Futures market advocates claim it is needed for price discovery, risk management, and speculation. Opponents object to speculators who manipulate the market for large profits, but the process of futures contracts is gaining general acceptance despite the problems associated with delivery. These and other questions arise because gas deregulation introduces the possibility for vertical integration. A gas-storage capability will be essential to a smooth-running futures market. (DCK)
- Research Organization:
- Energy Information Administration, Washington, DC
- OSTI ID:
- 5521725
- Journal Information:
- Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 8:47; ISSN EUSND
- Country of Publication:
- United States
- Language:
- English
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CONTRACTS
DEREGULATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
MARKET
NATURAL GAS
NATURAL GAS INDUSTRY
PROFITS
SPOT MARKET