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U.S. crude's premium over natural gas turned into a deficit for the first time after the rapid collapse of U.S. oil futures on Monday. The gap pushed some local gas prices negative because pipeline capacity could not handle the volumes.
Crude falling below gas on an energy-equivalent basis reflects demand destruction and signals oil-linked gas supply cuts, which tends to support gas prices over time.
reuters.comApr 20, 2020After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
