Question

1. During the first four months of 2020 the spot price of crude oil has collapsed, while the price of natural gas has remained relatively stable. In this question I want you to discuss the pattern of prices for natural gas, paying attention to these elements:

a) Describe the nature of the domestic natural gas market in the US: what regulatory features are important, how do you think they influence the market?

Answer 1

ANSWER:-

• With the wake of Covid 19, the worldwide level interest for crude oil import of crude oil saw an unsurpassed low , seeing a decrease in prices to negative, which is a first ever. Then again , the flammable gas prices saw a decay, not all that good in changes , which is practically near stable.
• The world is connected together so as to satisfy the interest for the fuel , as still larger part of intensity age is by means of non inexhaustible assets basically oil and gas. The fall of interest for natural gas and crude oil was faltering for the countries to import , by means of worldwide seelerslike UAE or USA and so on. As a prudent step.
• This rate demonstrated the worth world linkage as providers can possibly discover advertise if the worldwide exchange is feasible for their provisions. The prices for natural gas is shifting from 2-3.3/MMbtu. The prices are seeing a rising pattern now.
• What occurred in present occasions, the interest for feel significantly, to such an extent that the proprietor organizations needed to pay the organizations admission to store the Barrell of oil , subsequently moving the price to negative, as makers needed to pay so as to store their stores.
• In an immediate effect on this, the interest for crude oil feel  was high as a substitute.the world will take some time so as to move to options for perfect and less Costing energies, yet for the time being , despite the fact that prudent steps are being taken, the world is as yet reliant on the non_-sustainable assets significantly oil and gas.
• This is the way the prices are connected and subject to worldwide exchange.

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