Will natural gas follow oil higher?
Although the oil and natural gas markets face vastly different fundamental stories, they do have a few aspects in common. For starters, we’ve seen oil and gas drilling rig counts collapse to levels not seen since the financial crisis and at a pace we have never seen before. Secondly, both commodities will be influenced by the currency markets and the dollar strength is showing signs of fatigue. Both of these factors should at least provide support to the gas market and might even help pull prices up toward a more equilibrium level.