The spread between the prices of oil and natural gas recently reached its lowest point since 2009, possibly signaling an end to the price advantage natural gas has enjoyed in recent years, according to a recent article by Reuters.
The news agency reports that the collapse of U.S. crude oil prices since last summer and the recent rise in natural gas narrowed the spread between prices for the two home heating fuels. One million British thermal units of energy now costs only $4.55 less to produce with natural gas than it does with oil, the article states. In some locales, natural gas is no longer less expensive than oil. The Wall Street Journal reported in January 2015 that natural gas was actually more expensive for residential customers in Maine, once oil prices were converted into a comparable unit of measurement.
U.S. crude oil futures have dropped by about 60 percent from a high over $107 a barrel in June to a six-year low under $43 earlier this week, according to Reuters. U.S. natural gas futures, meanwhile, gained over 5 percent earlier this week, the article states.
To read the Reuters article, click here.