Comparing Oil and Natural Gas

ls oil destined for the path of natural gas?  Since breaking its tight uptrend last week, natural gas has continued its slide and has still not found support.  As shown in the bottom chart below, oil has now broken below the bottom of its uptrend, but it has yet to close solidly below it.  If that happens, it should see further declines in the short term.

click to enlarge

Comments

[John Egan]

Could be there's support at the consolidation level in June 2008, which is pretty much where the chart is now ... At about $130 ... Then again, in this market ????? Thx jegan ;-)

[scfranklin94]

the latest DOE inv number confirms that nat gas storage should easily get to 3.3 tcf at the end of the refill season, that combined with a mild hurricane season, looks like concerns for the winter are subdued. Since it's relatively easy for crude to go anywhere vs. the fact that nat gas is relatively domestic (some can be sent to Mexico/Canada), means that it's more likely the two products will diverge, unless demand destruction in cl continues.