Patent ID: 7162444

Claim:
A computer-based method for valuating natural gas futures and options contracts using weather-based metrics, comprising the steps of: (1) receiving, via a graphical user interface, an input from a user indicative of a number of monthly gas contracts desired for a period of time; (2) receiving, from a first database stored in a memory, historical weather information for at least one basket of cities during said period of time; (3) receiving, from a second database stored in said memory, future weather information for said at least one basket of cities during said period of time; (4) receiving, from a third database stored in said memory, historical natural gas inventory information for said at least one basket of cities during said period of time; (5) receiving, from a fourth database stored in said memory, historical gas futures contract price information for said period of time; (6) applying, at a server, a series of regression analyses to obtain a predicted baseline value for each of the monthly gas contracts within said period of time using said received historical weather information, said future weather information, said historical natural gas inventory information, and said historical gas futures contract price information; (7) receiving, from a data feed, live exchange data which indicates a current price for each of the monthly gas contracts within said period of time; (8) applying, at said server, a series of recommendation rules to said predicted baseline value, using said received live exchange data; and (9) providing, via said graphical user interface, said user with a recommendation for each of the monthly gas contracts within said period of time, wherein said recommendation reflects said input from said user indicative of said number of the monthly gas contracts desired for said period of time.