Home / What affects the price of natural gas?

What affects the price of natural gas?

With limited short-term alternatives to natural gas as heating and electricity generation fuel, changes in supply or demand often lead to price swings. According to the U.S. Energy Information Administration, supply-side factors impacting prices include production, imports and storage inventory levels. Demand-side factors include weather, economic conditions and petroleum prices, as petroleum may be used as a substitute for power generation.