XNGUSD is a trading asset that shows the cost of one MMBTU of natural gas expressed in US dollars. It is traded on the NYMEX (New York Mercantile Exchange).
The Henry Hub started operating in the 50s of the 20th century. Thirteen pipelines that provide gas to southern and central states of the USA interconnect in Erath, Louisiana.
Henry Hub is an important gas hub in the US pipeline system, which lent its name to the pricing point of natural gas futures traded on NYMEX since 1989.
The official price of a Henry Hub gas contract is the average value of the gas prices of 13 pipelines interconnecting in the distribution hub. It serves as a benchmark to form prices in the North-American natural gas market.
Demand for natural gas and production volumes affect the XNGUSD's cost in the first place. The prices of alternative energy resources, particularly oil and oil products, have an indirect influence, too. XNGUSD traders should also consider the world's political and economic situation. The owning company's financial reports should be given special attention. For example, the Henry Hub is owned and operated by Sabine Pipe Line LLC, a subsidiary of EnLink Midstream Partners LP.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
