Natural gas definition

Natural gas is a fossil fuel made up mainly of methane that is burned for heating, electricity generation, and industrial use, and it trades as a separate energy commodity from crude oil. In the United States it is commonly priced in US dollars per MMBtu, or million British thermal units.

Prices for natural gas respond strongly to weather, since heating demand rises in cold months and cooling demand can lift power use in hot ones, alongside production levels and storage. You can take exposure through futures, options, exchange-traded funds, or CFDs that track the gas price.

Natural gas is often grouped with crude oil under the energy heading, but the two are distinct: crude is priced per barrel and refined into fuels, while natural gas is priced per MMBtu and used largely for heat and power. Their prices can move independently.