Natural gas futures drop below $2 for the first time since Jan. 2002, as weak demand and robust...

This news story has 7 comments:

Register or Login to rate comments »

Ricardo Espinosa Comments (435)
 
Almost time to buy.
11 Apr 2012, 05:12 PM Reply Like

Tom Guttenberger Comments (688)
 
Steep contango so sub-$2 spot is a little bit of an aberration. Still love that 60-1 brent to ng, pretty funny.
11 Apr 2012, 06:20 PM Reply Like

tunaman4u2 Comments (2373)
 
Its insane... insane I tell you !
11 Apr 2012, 08:02 PM Reply Like

Poor Texan Comments (3487)
 
Need infrastructure!
11 Apr 2012, 07:14 PM Reply Like

Navid Ghanooni Comments (27)
 
Is there a defined correlation between natural gas prices and oil prices? This Market Current brings up an important point in regards to the subsidizing effects of high oil prices on natural gas prices.
11 Apr 2012, 11:08 PM Reply Like

Tom Guttenberger Comments (688)
 
Historically yes. The long-term ratio I have always heard quoted is 7-1 oil to ng, I feel 10-1 is ballpark estimate of the ratio. The correlation has almost completely broken down in recent years because nat gas is a by product of certain new drilling techniques which have become increasingly popular as we scramble to keep oil supply at a non-panic-inducing level, especially in the U.S. Coupled with a warm winter, we are left with a huge nat gas inventory, and a really supressed spot price. As a self-proclaimed oil perma-bull and peak theory believer, this story line seems consistent to me. But at the end of the day energy is energy, and price paths can only become so disparite until technology and businesses adapt to the supply/demand circumstances.
12 Apr 2012, 09:10 AM Reply Like

Moon Kil Woong Comments (8806)
 
There is way too much natural gas production because the US doesn't embrace LNG like it should. And the author is right that it is made when gas is pumped. You get it regardless of whether you need it or not. That's why I don't really see a floor on it. They'd sell it cheaper just to get rid of it.
12 Apr 2012, 03:28 AM Reply Like