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Oil to gas price ratio - Is this tops?

The ratio of oil prices to gas prices has varied from 1986 todate in the range of 4.3 to 21.5 with a mean of 10x and standard deviation of 2.8.

We are currently well beyond 3xStandard deviation from the mean and close to the peak of 21.5. This does seem to be close to the top. It would be interesting to see whether the top is formed by falling oil prices or rise in gas prices.


Source: U.S. Department of Energy, Energy Information Administration

Disclosures: No holdings in any oil or gas companies