Oil prices relative to gas

July 2016
  • Crude oil premiums to natural gas have narrowed after widening in the first five months of 2016. Brent's premium over the UK NBP narrowed to $3.6/MMBtu in July, down from above $4/MMBtu in May and June. The US crude-oil-to-gas spread also narrowed, with the premium of West Texas Intermediate crude over the Henry Hub narrowing from $6/MMBtu in May to around $5.1/MMBtu in July.
  • Heavy fuel oil's discount to Brent crude has narrowed as air conditioning use has increased demand for electricity during the Middle East's summer. The discount of European heavy fuel to Brent narrowed from $13.90 per barrel in June to $10.50/bbl in July as demand for the residual fuel improved relative to crude oil.

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