7 Dec

Does the Natural Gas Fall Relate to Oil’s Decline?

WRITTEN BY Rabindra Samanta

Trailing week

Between November 29 and December 6, natural gas (GASL)(GASX)(FCG) January 2018 futures had a correlation of -1.6% with US crude oil January futures. Between these two dates, US crude oil (OIIL)(USL)(DBO) and natural gas futures fell 2.3% and 8.1%, respectively.

Does the Natural Gas Fall Relate to Oil’s Decline?

Energy commodity downturn

This week, drivers of the US energy market could have dominated oil prices. Moreover, a rise of 6.8 MMbbls (million barrels) in total motor gasoline inventories in the week ended December 1 could have contributed to the 2.9% downside in US crude oil prices on December 6, when the EIA (US Energy Information Administration) released oil inventory data.

Natural gas prices were largely dominated by the weather forecast data, as we discussed in Part 1 of this series.

30-day rolling correlation

On December 6, the one-month rolling correlation between natural gas and US crude oil prices was also a minuscule 0.1%. However, the correlation was above 30% between May and July 2017 more of the time, which may indicate a direct relationship between the two energy commodities. Often, natural gas may track oil prices. In fact, the energy sector as a whole may follow oil prices. However, lately, this trend hasn’t been the case. The two energy commodities are moving independently, driven by individual factors.

Visit Market Realist’s Energy and Power page to learn more.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.38.64