Gregor Macdonald's fine site Gregor.us is a new and welcome addition to our list of places we hang out at in the middle of those nights we have failed to take our medicine.
Gregor provides outstanding analysis of the sources and markets for energy and conveys that analysis in short and simple articles.
As always, click the chart for the entire work.
For A Million BTU
The price differential for a million btu is blowing out once again, between Global oil and North American natural gas. The extraordinary discount has persisted for some years. But today, with West Texas Intermediate (WTIC) oil above $100 and Brent oil above $110, the spread has reached new highs. The energy content of natural gas is trading at an 83% discount to WTIC Oil, and at an 85% discount to Brent oil.
And we're paying the Saudis and Hugo Chavez mas o menos a hundred bucks a barrel because?