# Crude oil and Natural gas

Their prices have moved together.

Source page: https://www.materialinsights.org/links/crude-oil-and-natural-gas/

[Crude oil](https://www.materialinsights.org/energy/crude_oil/) (energy) and [Natural gas](https://www.materialinsights.org/energy/natural_gas/) (energy): 1 relationship.

## How they are linked

### 1. Price link: competing fuel

*Cost and price · Moderate · Both ways*

Gas and oil compete in heating, power and industry, and older European gas contracts were indexed to oil. As hub trading took over the tie weakened: monthly moves correlate at only 0.16, though yearly changes still correlate at 0.60 because both follow the same energy cycle.

- **0.16** monthly change correlation
- **0.60** 12-month change correlation
- **0.37** fitted elasticity

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