A period of divergence between WTI and natural gas may be in the offing
Putnam, Chief Economist and Managing Director at CME Group
Since 2009, US WTI crude oil and Henry Hub natural
gas have seen their prices fall by more than 50%, although not
exactly in lock step. For different reasons, we are
seeing the potential for a change in the market dynamics in
both energy and emerging market currencies. Specifically,
in the case of US energy markets, the next round of potential
market moving events suggest that a period of divergence
between WTI and natural gas may be in the
In the crude oil world, there are three evolving
themes – China deceleration, continued growth in US
production, and more oil supply from the Middle East –
that all have more time to run and all point to trading in a
wide range with no price rebound in sight.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |