Commodity Readings: Oil vs. Natural Gas, Wheat imports
- NY Times: As Oil Soars, Natural Gas Is a Bargain
Tankers can move oil or refined products to anywhere from anywhere, and will do so if prices rise in one region relative to those in another. Growing demand for oil in Asia, as well as fears of instability in the Middle East, have helped to raise oil prices . . . But there is little capacity to move L.N.G. out of the United States if prices here fail to keep up with those in other parts of the world, as they have this year.
On a relative basis — comparing the amount of energy bought with a dollar’s worth of oil with a dollar’s worth of natural gas — the price for gas is now about half that of oil. That was the ratio prevailing back in 1990 and 1991, when the “gas bubble” of excess American production was viewed as holding down natural gas prices.
- BCA Research: Oil Bulls, Natural Gas Bears
A decision by India to hold back from making purchases may help curb world prices that have soared 64% in the past year after dry weather damaged crops from Canada to Australia. India bought 1.3 million tons in July and August, and in September set an output target of 75.5 million tons for next year, the most in seven years.
State-owned warehouses held 10.9 million tons on Sept. 7, enough to last 10 months, according to Food Corp. of India, the biggest buyer of grains.
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