I've been having a bit of a time trying to make sense out of the Nat Gas price action. This overlay with US Crude provides some context
USOIL
NG1!
Having set both NG and USOIL to log scale and relating them back to the origin of NG1 in 1990, a pattern emerges. NG can be seen to have more extreme reactions to similar geopolitical input to USOIL. Now, one can expect with a reasonable degree of certainty that there will be a common causality between the two commodities.
No chart can completely demistify the oil and gas relationship, nor predict future outcomes with a fine granularity. That said, comparisons can be drawn to previous decades and relationships extrapolated to attempt to determine direction and amplitude. Previous peaks suggest that a significant downturn could be within the realm of possibility. What degree of probability and timeframe is yet to be seen on this chart, but history often rhymes.
This is not investment advice. I am not your investment advisor. All analysis for entertainment purposes only. Please seek advice from licenced investment professionals before you choose to invest in any stock, bond, commodity, REIT, derivative, future, or other risk on asset.
USOIL
NG1!
Having set both NG and USOIL to log scale and relating them back to the origin of NG1 in 1990, a pattern emerges. NG can be seen to have more extreme reactions to similar geopolitical input to USOIL. Now, one can expect with a reasonable degree of certainty that there will be a common causality between the two commodities.
No chart can completely demistify the oil and gas relationship, nor predict future outcomes with a fine granularity. That said, comparisons can be drawn to previous decades and relationships extrapolated to attempt to determine direction and amplitude. Previous peaks suggest that a significant downturn could be within the realm of possibility. What degree of probability and timeframe is yet to be seen on this chart, but history often rhymes.
This is not investment advice. I am not your investment advisor. All analysis for entertainment purposes only. Please seek advice from licenced investment professionals before you choose to invest in any stock, bond, commodity, REIT, derivative, future, or other risk on asset.