Price ratio of crude oil to natural gas continues to increase
TODAY IN ENERGY: Friday, April 13, 2012
The ratio between the spot prices of crude oil and natural gas is a measure of the market's relative valuation of these two fuels. This ratio has been generally increasing since January 2009, but it has climbed rapidly in recent months (see chart). The ratio increased because of both increasing crude oil prices and decreasing natural gas prices. The crude oil-to-natural gas spot price ratio has implications for production and consumption.