smurphny

6 Natural Investments in Natural Gas

Yes, if anything, NG is closer to its long term average than oil if you eliminate the irrational '07 spike. I can see oil going down to or lower than $35 because of the apparent accumulation of supplies on tankers that has been hinted at. We may well discover that, as after the '70s spike, the world is awash in oil.


On Dec 13 10:31 AM long_on_oil wrote:

> The ratio of oil to natural gas energy wise is 6:1 so eventually
> both will settle on prices that reflect the ratio. So $7 nat gas
> equates to $42 oil etc. If you are investing in natural gas that
> is a very important ratio to remember.
> Natural gas is now $5.88 that translates to $35 oil or if natural
> gas comes back to the current price of oil it would be at $7.60.
> The two have been drifting towards the ratio for the past 3 months.