Natural gas has fallen about the same as stock prices have taken a plunge.

 Is there some type of correlation with the financials market? It certainly makes you think. We see that Natural Gas has taken a nose dive down. Now let’s look at a stock exchange index and compare.  Whenever you seen the stock market take a harsh move down it would probably be an indicator of what Natural Gas may doing as well.

NYMEX Natural Gas Futures Chart

Now take a look at the S & P 500 over the same time frame. The nose dive spurred on Natural Gas to do the same or so it would appear.

S&P 500 Index Chart

Henry Hub is the pricing point for natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX). It is a point on the natural gas pipeline system in Erath, Louisiana. It is owned by Sabine Pipe Line LLC.

It interconnects with nine interstate and four intrastate pipelines: Acadian, Columbia Gulf Transmission, Gulf South Pipeline, Bridgeline, NGPL, Sea Robin, Southern Natural Pipeline, Texas Gas Transmission, Transcontinental Pipeline, Trunkline Pipeline, Jefferson Island, and Sabine. The two compressor stations can compress 520,000 decatherm/d (6.3 GW) . The transportation capacity is 1.8 billion ft³/d (bcf) (590 m³/s) (20.4 GW) (Sabine Pipe Line, LLC, 2000).

Spot and future prices set at Henry Hub are denominated in $/mmbtu (millions of British Thermal Units) and are generally seen to be the primary price set for the North American natural gas market. North American unregulated wellhead and burnertip natural gas prices are closely correlated to those set at Henry Hub.