%0 Journal Article
%T Natural Gas Prices on Three Continents
%A P¨¦ter Erd£¿s
%A Mih¨¢ly Ormos
%J Energies
%D 2012
%I MDPI AG
%R 10.3390/en5104040
%X We investigate the pricing formation of natural gas markets on three different continents (Europe, Asia and North America). We find that natural gas markets showed a strong relationship with the crude oil market between 1992 and 2001 and natural gas prices tended to thermal parity with crude oil prices. From 2002 natural gas markets exhibited a less pronounced relationship with the crude oil market and major natural gas markets were severely underpriced compared to crude oil. A globally integrated natural gas market, comparable to the global oil market, has not evolved. The main natural gas markets, however, exhibit some level of integration, especially over a longer time. The European market exhibits the strongest levels of integration, while the North American market exhibits the weakest.
%K natural gas
%K crude oil
%K thermal parity
%U http://www.mdpi.com/1996-1073/5/10/4040