Skip to main content

The chart above shows the ratio of the price of natural gas in relation to the price of crude oil. While crude oil has fallen over 20% in the past couple of months, the natural gas price has fallen over 40% and now looks cheap in comparison.

Nearly every time the ratio between the two has fallen below 0.08 over the past decade natural gas has found an intermediate-term bottom. And, being a very seasonal commodity, natural gas has found a September bottom in each of the past two years: