Since 2022, gas prices in Europe and Asia have tended to trade more closely around oil
prices.In this paper,we explore some of the substitution links that exist between oil and gas.

While the substitutability tends to create a positive price correlation, we will see that the development of associated gas production tends to create a negative one.The high share of associated gas production in the United States will lead us to question the market consensus of a significant drop of gas prices below oil prices in the years to come.

Download our full paper to explore the substitution links between oil and gas, the role of U.S. associated gas production, and what it means for future price dynamics.