TeachMeFinance.com - explain Spot market (natural gas)
Spot market (natural gas) The term 'Spot market (natural gas)' as it applies to the area of energy can be defined as ' A market in which natural gas is bought and sold for immediate or very near-term delivery, usually for a period of 30 days or less. The transaction does not imply a continuing arrangement between the buyer and the seller. A spot market is more likely to develop at a location with numerous pipeline interconnections, thus allowing for a large number of buyers and sellers. The Henry Hub in southern Louisiana is the best known spotmarket for natural gas'.
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