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Current DateTime: 06:49:06 10 Nov 2009
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Current DateTime: 06:49:06 10 Nov 2009
LinksList Documentid: 30111251
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Difference in Oil and Natural Gas Hits 18-Year High
Published: Tuesday, 9 Jun 2009 | 7:47 AM ET
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The ratio of crude oil to natural gas futures prices on the New York Mercantile Exchange reached their highest level since mid-July 1991 during yesterday's trading session. Oil closed the pit session at $68.09 / bbl and Natural Gas closed at $3.731 / million BTU for a ratio of 18.25 to 1 between the commodities.  So far this morning, both commodities are trading up with the ratio roughly the same.

  • Looking at data going back to early June 1990, the average ratio of crude oil to natural gas futures prices stands at 9.256
  • Earlier in the session yesterday, this ratio hit as high as 18.55
  • The last time this ratio crossed above 18.55 was in July 1991

Thomson Reuters
Ratio of Crude Oil to Nat. Gas

The divergence of these energy commodities has some investors believing a price correction could be in place.  Indeed, the average price for natural gas in the past twelve months was $6.511 / million BTU, while the average price for crude oil over the same period stood at $74.61.  The five year averages for the two are $7.495 and $68.50 respectively.  If they were to move to their averages, natural gas will have a significant move.  Here are some companies that could benefit from a rebound in natural gas prices:



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