Oil and Natural Gas Prices Divergent in the past Year – Correction Coming?

An interesting discussion regarding the price of oil and natural gas has picked up at Econbrowser. The data depicted in the graph below shows the prices were correlated up to last year. So what does that mean in the near future? A major correction?

oil natural gas prices

The complete article is located here : http://www.econbrowser.com/archives/2009/07/natural_gas_and_1.html

[tags]oil, natural gas, gas, prices[/tags]

One comment

  1. I think your graph is interesting and it does tell a story, however, I think trend is more important than divergent prices. For example, from 2000 to 2002 oil prices went down with little divergence. I think exogenous factors and expectations of supply and demand drive future prices more.

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