Bruce Jefferson
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Bruce Jefferson in Commodities,

Does Being An Oil Bear Make You A Nat Gas Bull?

WTI crude oil prices are back above $54/bbl for the first time since February, which is good news for many oil investors. But while crude oil prices have surged 15 percent in the past month, natural gas prices have fallen 5.8 percent in that time.

Bernstein analyst Jean Ann Salisbury recently explained why oil bulls and natural gas bulls may just be at odds in a recovering energy market. According to Salisbury, a ramp in crude oil production in response to rising oil prices will pump more associated gas into the market, limiting upside in gas prices.

“We believe that investors have not fully understood that gas and oil price should in many ways trade inversely with each other,” Salisbury wrote. Read more