Why do Natural Gas stocks drop when price of oil drops?

Question

Why do Natural Gas stocks drop when price of oil drops?

Answer 1

Talk with your broker about this.

Basically, there source is much the same. Find one and you can preety much the other!

Answer 2

Good Question...

Your question provide it's own answer which is not true in the long view.

When I started in the "Oil bidness" 50 years ago, Crude brought around $4 a barrel (42gals) and Natural gas was around 10 cents an MCF.

Today Oil is 25 times higher at over $100 and Natural Gas is 1,200 times higher at over $12.

The prices you are seeing in the Market are Spot Prices for future delivery which cover only a VERY SMALL portion of the hydrocarbons being sold and delivered and which are being sold (or bought) to round out existing needs of the end user.

regards,

Texian

Answer 3

the price of natural gas is about 1/6th of crude. In fact many wells produce both and are depleted at the same time