Older Article (2011)Relationship between Natural gas/Coal/Oil prices Things have changed somewhat but these studies say that gas should eventually trade
at a 6-1 to 10-1 ratio to oil (i.e. $
11-to $
19 UE$/mmbtu if oil stays at $110). May take a while to
get there but a lot of the things mention in the study are still very revelant and even more so today.
(i.e heavy US industrial users of natural gas are getting a huge break at US$7 gas - can't have everyone else in the world paying $25-$35 or more - people will start asking questions and ask what is going on)
https://www.financialsense.com/contributors/bill-powers/natural-gas-vs-oil-and-coal Lot of people must of went short after the Freeport plant and the Fed rate response. Should be a big oppurtunity in winter gas futures if this keeps up - all months below 7 bucks now.