# Crude oil and LNG chain

Their prices have moved together.

Source page: https://www.materialinsights.org/links/crude-oil-and-lng-chain/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [LNG chain](https://www.materialinsights.org/energy/e_lng/) (energy): 1 relationship.

## How they are linked

### 1. Price link: priced by formula

*Cost and price · Moderate · Both ways*

Most Asian LNG is bought on long-term contracts that set the gas price as a share of a lagged oil price. That shows in the data: monthly moves hardly correlate (-0.06) but yearly changes correlate at 0.56, and oil leads Japan's LNG price by about 4 months.

- **-0.06** monthly change correlation
- **0.56** 12-month change correlation
- **0.71** fitted elasticity

Built from the site data on production routes, energy flows, industry value chains, input-output tables and prices.