Will Middle East Turmoil Impact Local Energy Markets?
January 06, 2020
Until the advent of major U.S. shale plays circa 2008, the relationship between WTI crude oil spot prices and the Henry Hub natural gas benchmark moved in unison. However, what was a rather strong correlation coefficient has changed. Sometimes the two move inversely. With recent turmoil in the Middle East sending crude oil prices up, producers are motivated to increase crude oil production. This should bring even more associated natural gas from U.S. shale plays into an already over-supplied market.
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