The chart above (with my annotations on the far right) is from a research piece by The Carlyle Group.
From 1997 to 2005 oil and natural gas sat roughly at parity on an energy-adjusted basis. The spread widened thereafter, but came back in line when oil crashed.
Now we face the most epic spread in history.
Question: Is this one of the greatest opportunities in history? Or is this going to go down as the biggest “pain trade” of all time?
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