Demystifying the Commodity Crescendo

Crude Oil and Natural Gas Spread Widening

If you’ve been following the commodity market recently, you most definitely will have heard that the historically consistent multiple between crude oil and natural gas forward contracts is widening. This sudden change in the trend of this multiple is quite telling of industry fundamentals.

The Multiple over Time

Recent Behavior

Why do crude oil and natural gas prices generally follow each other at a consistent multiple? The answer lies in the science.

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