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What is a Forward Curve?
Forward curves represent the market’s best estimate for what the eventual spot market price will be for a particular month at a particular location, based on currently known supply and demand fundamentals. However, those supply and demand fundamentals are constantly changing, especially in a volatile market like natural gas, so the current forward price for a particular location and month will likely be different from its actual final spot market price, especially for months farther out on the curve.
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