Eventually, Someone Is Going To Profit Off Of This Massive Arbitrage Opportunity

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Joe Weisenthal

This shouldn’t surprise you: Oil prices have held steady, while natural gas prices have gone into total freefall.

Natural gas has been “cheap” for sometime, but the warm winter has really been killing it, and so the relative cost of oil has exploded higher.

Of course, the two aren’t perfect substitutes, and as everyone knows there are major infrastructure challenges associated with using more natural gas in the economy (you can ask T. Boone Pickens about that). But at some point, given the need for cheap energy that doesn’t help fund countries that help fund terrorism, you’d think this might mean revert. Maybe.

Read more: BI

Posted on February 5, 2012, in Energy, Natural Gas, Oil and tagged , , , , , , , , , , , , , . Bookmark the permalink. Comments Off on Eventually, Someone Is Going To Profit Off Of This Massive Arbitrage Opportunity.

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