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Hi Kiran, When USD surges oil declines. That's a very clear pattern because the entire world's oil is traded in USD although it's not produced necessarily in the US. Whereas, with Henry Hub Natgas, it's produced in the US and all the costs are in USD. So USD appreciation doesn't matter for Natgas price. It has more to do with supply and demand. That's my opinion of course.
Hi Kiran,
ReplyDeleteWhen USD surges oil declines. That's a very clear pattern because the entire world's oil is traded in USD although it's not produced necessarily in the US. Whereas, with Henry Hub Natgas, it's produced in the US and all the costs are in USD. So USD appreciation doesn't matter for Natgas price. It has more to do with supply and demand. That's my opinion of course.