Natural Gas Prices Falling Steadily, Oil Still Looking Weak

posted by Nima

September 3, 2009 · Posted in General Economics 

It seems like natrual gas prices reflect economic reailties with much less noise than other commodities. The end result is the same, but volatility differs.

Take a look at the chart for US Natural Gas (UNG):

ung
Click on image to enlarge.

Since the commodity bust in July 2008 natural gas prices have declined at a remarkably steady pace, reflecting an ongoing decline in energy demand for households.

Here is a comparison between oil (USO) and natural gas (USG) for the same period:

ung-uso
Click on image to enlarge.

While both have been moving down, oil acts a whole lot more volatile and seems to be subject to more speculation than natural gas.

Looking at the chart above, and taking into account all the deflationary fundamentals that still persist, my guess is that oil will make another move down from here and drop more strongly than natural gas, continuing the oscillatory pattern.

Found this post helpful? Consider supporting the cause of economic education, freedom, peace and happiness. All donations will be used to advertise this blog online to as many people as possible.


… have no money to donate? No problem, there are other ways to promote the cause. Use the “SHARE” link below and share this post with friends and family!




Bookmark and Share

Related posts:

  1. Home Prices January 2009
  2. Home Prices – November 2008
  3. Chinese Property Owners Smash Showroom in Protest over Falling Prices; The Chinese Housing Bust is Underway
  4. Home Prices – April 2009
  5. Home Prices – February 2009
  6. Home Prices – March 2009
  7. Home Prices – May 2009 – Beginning to Bottom Out?
  8. Home Prices at 5 Year Low
  9. The EconomicsJunkies Community Relaunches!
  10. Consumer Prices September 2009 – Real Prices Down 4.7%

Tags: , , ,

Comments

Leave a Reply




 

Subscribe without commenting