Energy-market ratio comparing crude-oil price per barrel with natural-gas price per MMBtu.
The oil price to natural gas ratio compares a crude-oil price per barrel with a natural-gas price per million British thermal units (MMBtu). It is a relative-value measure used in energy-market analysis, not a guaranteed trading signal.
If Brent crude is $75 per barrel and Henry Hub natural gas is $3 per MMBtu, the ratio is:
The ratio shows how many MMBtu-priced units of natural gas one barrel-priced unit of oil buys at current market prices. It is often used to compare relative energy pricing, producer incentives, fuel-switching economics, and the split between oil-linked and gas-linked energy markets.
The ratio is not a pure heat-equivalent comparison unless the analyst adjusts for energy content. EIA’s energy-unit guide notes that one 42-gallon barrel of crude oil is about 5.689 million Btu, so a price ratio far above that level indicates oil is expensive relative to natural gas on a rough energy-content basis.
| Input | Common public reference |
|---|---|
| Oil price | Brent or WTI spot/futures price, depending on the analysis. |
| Natural gas price | Henry Hub spot or futures price in dollars per MMBtu. |
| Ratio period | Daily, weekly, monthly, or model assumption. |
| Use case | Relative-value screen, energy-sector analysis, producer economics, fuel-switching context. |
EIA has used Brent crude spot price divided by Henry Hub natural gas spot price as a crude-oil-to-natural-gas price ratio in public analysis. See EIA’s ratio discussion, energy-unit guide, and spot crude price data.
The ratio can change because oil rises, gas falls, both move in opposite directions, or both move by different amounts. Important drivers include: