The Fall in Oil is Bad Even Compared to Natural Gas
If you have not heard about the weakness in Oil prices then maybe you have just awoken from a 2 year cryogenically induced sleep. Since mid 2014 the price of Crude Oil has fallen from over $100 per barrrel and now sits near $30 per barrel. That is a long trend lower and a crushing loss of value. But compared Natural Gas this picture is quite a bit tamer.
The chart above compares the price of Crude Oil to the price of Natural Gas. Notice that it made a peak in April 2012 and has been falling ever since. For almost 4 years the ratio has been trending lower in a falling channel. Now that ratio has lost over 75% of its value.
And other than a trend of higher volume it does not seem ready to stop yet. No blow off selling. No capitulation. The stock markets may not like this but it sure is ice when filling up the tank of the car or heating your home this winter.
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