 In this video, I'm going to explain the factors that can influence natural gas price. In contrast to crude oil, natural gas is almost not a global commodity yet. It can be considered as domestic commodity in the United States. So things that are happening outside the United States, they don't have a major impact on the natural gas prices. So we can focus on the factors that are happening in the United States. And two of these major factors are US economy and weather events. Other factors such as the level of US natural gas inventory can also impact the natural gas prices on weekly basis. The higher natural gas inventory means a high supply or having enough supply for fluctuations in demand. So if there's a high level of inventory, it can translate to not having, not experiencing, not expecting the higher price of natural gas. US economic indicators such as the stock market employment figures, housing and manufacturing, they impact the natural gas prices. On the other side, a global economy, US dollar exchange rate would not have impact on the pricing of natural gas. First factor is the weather. More than 50% of American homes are heated by natural gas. So any cold or extreme weather could potentially increase the price if there is a shortage in supply, if there is an unexpected demand, it could shift the price to higher prices. Also hot weather could cause the price increase because people will use air conditioning to lower the inside temperature for space cooling and so increase in demand of electricity could potentially increase the natural gas prices. The other weather event is hurricane, same as crude oil that we explained. Hurricane in the region of Gulf of Mexico can disrupt the supply, can damage the platforms. Evacuation in recovery after the hurricane can potentially interrupt the supply. US economy, similar to crude oil fluctuations in economy, translate into an increase or decrease in energy consumption. North American natural gas is not truly global commodity, so global economy does not have impact on the price of natural gas. The other factor that could potentially affect the natural gas price is the reports about production levels versus demand indicators. Any statistics, any information about supply or demand of natural gas can potentially affect the price. EIA, Energy Information Administration from the Department of Energy publishes a weekly report every Thursday at 9.30 a.m. This report is about natural gas storage and it has some pieces of information that I'm going to explain them in the following slides. EIA Weekly Natural Gas Storage Report includes pieces of information on natural gas storage. The first piece of information is regional breakdown, the activity for the EIA defined regions, which includes the major consuming regions, both east and west, and producing region. The producing region is further broken down into the salt and non-salt storage facilities, with the majority of the salt caverns existing along the Gulf Coast. Injections or gas added and withdrawals, gas removed by the region can be telling about the weather conditions in each area. A good balance is when the consuming regions are withdrawing, the same amount of gas as producing a region is injecting gas. The other very important piece of information included in EIA Weekly Natural Gas Storage Report is the total gas in storage. It is the change in storage levels from one week to the next week. It is the first thing that traders and other parties involved in the natural gas market would look to for the guidance. This high level of storage or injection in the report can be translated to a bearish price signal. That is the production exceeds demand for the prior week. The converse is also through for the removal of gas from the storage or withdrawal in the report that can indicate demand exceeded the production for the prior week. Prior to the release of the report, analysts have compiled forecasts in the variance of the actual volume to these predictions. The other piece of information that can be found in EIA Weekly Natural Gas Storage Report is comparison to a year ago. This data includes the information, the current inventory level compared to the same period that previous year. In order to truly interpret this comparison correctly, we must consider whether this year, with the last year, if there was or there is harsh winter we are experiencing or we were experiencing cold days. The last piece of information in the EIA Weekly Natural Gas Report that is important for us is the comparison to the five year average that can be found in the report. The other factor that can influence natural gas price is electrical generation fuel switching. A large amount of countries power plants were fueled by coal and they can switch. They can switch their fuel to natural gas if natural gas price is so competitive or more restrictions are being enforced for the emissions. But this effect is a more long term effect. Also the Nuclear Regulatory Agency publishes a daily status report for all nuclear power plants in the United States. When plants are down, more electricity is generated by natural gas.