Since the April highs oil prices dropped by about 30%; Henry Hub natural gas prices on the other side gained more than 30%. There's not much correlation between those two energy products left lately.
It's getting interesting if we compare the pure prices by energy units measured in joule:
1 Barrel Brent Oil -> around 5.86 Gigajoule -> USD 93 -> 15.87 USD/Gigajoule
1 MMBTU Henry Hub -> around 1.055 Gigajoule -> USD 2.75 -> 2.61 USD/Gigajoule
That means Oil is more than 6 (!!!) times more expensive than Natural Gas in terms of energy. Sure, oil will always be more expensive than natural gas but in the long term I'd expect this huge gap to decrease.
It's getting interesting if we compare the pure prices by energy units measured in joule:
1 Barrel Brent Oil -> around 5.86 Gigajoule -> USD 93 -> 15.87 USD/Gigajoule
1 MMBTU Henry Hub -> around 1.055 Gigajoule -> USD 2.75 -> 2.61 USD/Gigajoule
That means Oil is more than 6 (!!!) times more expensive than Natural Gas in terms of energy. Sure, oil will always be more expensive than natural gas but in the long term I'd expect this huge gap to decrease.
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