Natural gas provides energy for homes, commercial buildings and utility plants. and is measured in Btu (British Thermal Units).
The state with the largest production of natural gas is Texas in the United States. Russia and the US together produce nearly 42% of the world production of natural gas. There is a greater demand for supply in the winter months, which has an effect on the pricing of this commodity. Extremely hot weather in the summer months however can produce larger demands for this product, as it is required to power cooling products as well as heaters.
Most natural gas operations are held in the Gulf of Mexico therefore any extreme weather conditions in this region can affect the price, which could explain the extreme volatility this product is renowned for.