COM - Natural gas now more expensive than oil was pre-pandemic

US natural gas (UNG) prices rose more than 9.0% in early trading Monday, as the market continued to search for a price to balance supply and demand. WTI (CL1:COM) for July 2022 delivery is now trading at ~$119/b; however, pre-pandemic, WTI (CL1:COM) for July 2022 delivery was trading at ~$50/b: In the years preceding the pandemic, Henry Hub (NG1:COM) traded for ~$3.00/Mmbtu ($17.4/boe), but realizations for many producers were at a steep discount to the hub price, as pipeline constraints often resulted in negative in-basin prices or flaring. Fast forward to today, and one Mmbtu of gas (NG1:COM) trades for ~$9.30 -- on an energy equivalent basis, one barrel of oil contains the same amount of energy as 5.8Mmbtus of gas, highlighting that natural gas now trades at ~$54 per barrel oil equivalent (boe). Natural gas names like SM (SM), Range (RRC) and EQT (EQT) are rallying, up 2-5% Monday and up

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Natural gas now more expensive than oil was pre-pandemic