There are several factors which directly or indirectly affect Natural Gas prices. As we have already seen some factors affecting the demand and supply of Gas, these factors have a bearing on the prices as well. Some of the important factors which impact Gas futures prices are as follows:
US NG Inventory Data
Weather Effects
US Petroleum Inventory Data
Production and Consumption Patterns
High oil prices

Demand for Natural Gas has traditionally been highly cyclical. It depends highly on the season, and changes from season to season. The key driver for this primary cycle of Natural Gas demand is the need for residential and commercial heating. As expected, heating requirements are highest during the coldest months and lowest during the warmest months. This has resulted in demand for Natural Gas spiking in January and February, and dipping during the months of July and August. In addition to this cyclical demand cycle, there are two primary drivers that determine the demand for Natural Gas Source: EIA in the short term. These include: Weather - As mentioned, Natural Gas demand typically peaks during the coldest months and tapers off during the warmest months, with a slight increase during the summer to meet the demand of electric generators. An extremely hot winter can result in greater cooling demands, which in turn, result in an increased summer demand for Natural Gas. Fuel Switching -Supply and Demand in the marketplace determine the short term price for Natural Gas. The price of Natural Gas can affect its demand for certain consumers. This is particularly true for those consumers who have the capacity to switch the fuel upon which they rely. While most residential and commercial customers rely solely on Natural Gas to meet many of their energy requirements, some industrial and electric generation consumers have the capacity to switch between fuels.