Can Anyone Interpret This?

Commodity paper contracts are sold and bought on what is called the "Futures" market.
The reason it's called the futures market is because the contracts expire or can become the paper traded for a real product on a certain time in the future.

This is called settlement day, which is usually every 2 months.

Settlement day could be in October or September or even 1 year into the future.
The money offered on a futures contract affects the price of the commodity.
If there are not to many sellers of the paper contracts, an agency with deep pockets { lots of assets } such as Goldman Sachs or a combination of buyers with lots of assets can bid up the price until some holders of these futures contracts decide to sell for the current profit, or for other reasons. { margin call/bankruptcy }

If no one is selling the price rises because of the natural laws of supply and demand of the paper contract,,,not the supply and demand of the commodity itself, in this case natural gas.

Hope this helps.

Yes, in the ground, on his property.
He wants to drill, meter it, and get paid.
Probably just a few hundred dollars per month.
BUT..
As of a few months ago, the well drillers told him there was a moratorium on punching new holes.

For what it's worth,

Yep , comodity investing with your money.
Welcome to gov't take over by stimulous.
The FED MUST get their notes ciculating ..The private sector is dead.
Good people do Good deeds
Good people make it happen

Natural gas jumps again on eve of heating season
Natural gas pushes higher even as demands remains woeful; oil prices jump
Mark Williams, AP Energy Writer
Tuesday September 15, 2009, 2:11 pm EDT

Natural gas prices that have fallen steadily for a year are bouncing back sharply, up 16 percent since Monday, raising questions about whether prices fell too far.

Gas for October delivery rose more than 2 percent, or 6.3 cents, to $3.36 per 1,000 cubic feet Tuesday in trading on the New York Mercantile Exchange.

That is still far from the $14 that natural gas commanded last summer, before the recession destroyed demand for gas, gasoline and jet fuel. Demand has been especially weak from major industrial customers.

Yet given the fact that storage facilities are brimming with gas, the $1 spike since the beginning of the month has many energy analysts skeptical.

http://finance.yahoo.com/news/Natural-gas-jumps-again-on-apf...

The value of the dollar is falling, the dollar therefore buys less. Why is gas $2.60-$3.20/gallon across the country? The same reason.

Speculators!

A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences. Proverbs 22:3

Natural gas is a commodity that has somewhat inelastic demand, this means that the same aproximate amounts will be consumed regardless of price fluctuations.

They're maximizing revenue for the winter heating season (in my estimation).

Another example of such a product is insulin for diabetics.

This is also why gasoline consumption did not decrease significantly when we hit record prices last year - people could not adjust in the short term (i.e. their commute to work could only be shortened by moving and/or changing jobs. Many are unable to move and/or change jobs).

This is called "being bent over a barrel."

_______________________________________________________
"All the brave soldiers that cannot get older, been askin' after you." -- Crosby, Stills, and Nash

anyway you wish)

"We have to spend money to keep from going bankrupt"
Joseph Biden VP , USA

can bump it for others.