what is the relationship between crude oil and natural gas?

guardiangel

Junior member
19 0
i see inverse movement at times between both futures, i wonder if there is any fundamental relationship between the two?
 

Rhody Trader

Senior member
2,620 264
The fundamental linkage between the two is that they are in some ways replacement products for each other. If, for example, heating oil prices rise too high it will encourage people to switch to natural gas heating. Unlike heating oil and gasoline, however, nat gas is not directly tied to crude oil as a distillate. Also, because oil is used in many more ways than gas (think lubricants, plastics, etc.) the factors effecting the supply/demand aspects of the two markets can be considerably different.
 

piparb

Active member
220 2
Oil and natural gas

The fundamental linkage between the two is that they are in some ways replacement products for each other. If, for example, heating oil prices rise too high it will encourage people to switch to natural gas heating. Unlike heating oil and gasoline, however, nat gas is not directly tied to crude oil as a distillate. Also, because oil is used in many more ways than gas (think lubricants, plastics, etc.) the factors effecting the supply/demand aspects of the two markets can be considerably different.
The linkage is , that both are burning :smart:
But the problem is , they both getting expensiver every day .
So I use wood to burn , I p!ss off gas industry ......
 

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