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Oil Price May be Capped at $80/d as Natgas Plummets: Bloomberg

OIL

Falling natural gas prices will have bearish implications for all commodities, particularly oil, according to Bloomberg Intelligence.

  • Quantitative easing and Russia’s invasion of Ukraine both showed that crude above $100/b was too high, as shown by OPEC being forced into supply cuts to buoy prices, Bloomberg said.
  • “Gas -- the highest volatility major commodity -- may be among the first to transition to the new low-price regime, and crude oil appears to be a leading laggard,” Bloomberg said.
  • WTI is currently around 48 times the price of natural gas, close to the 2012 peak which marked a 30% fall in crude prices, Bloomberg added.

Source: Bloomberg Intelligence

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