Will Nat Gas Prices Suffer from More Oil Production?

[TraderTate + 186]

I'm a trader trying to get a handle on the correlation between oil and gas prices. It seems to me that any uncommonly extreme weather aside over the next two quarters nat gas isn't going to budge and could see a price dip if oil production keeps rising (so, if oil prices make more production worth it). Anyone in this forum have a handle on the correlation?

[Kate Turlington + 44]

I'm not a market guru by any stretch ... I stick more to the geopolitics. But ... I see a definite correlation. Even so, the weather makes it almost impossible to be a fully direct correlation. Mother Nature skews the predictions here. If you entirely remove weather from the equation, as you suggest, then I think it makes sense to say that if oil production rises (US), it will also produce more associated nat gas and liquids ... and nat gas supply is already meeting demand, so if weather doesn't step to increase demand, prices should be either flat or lower.