"Exploring the Safety Valve: Why Gas Prices Lack Stability Compared to Oil"

1 min read
Source: The Wall Street Journal
"Exploring the Safety Valve: Why Gas Prices Lack Stability Compared to Oil"
Photo: The Wall Street Journal
TL;DR Summary

While the oil market has a safety valve in the form of storage capacity, the gas market lacks such a mechanism, leading to price volatility and supply disruptions during periods of high demand. The inability to store gas at the same scale as oil has made the gas market more susceptible to price spikes and shortages, highlighting the need for improved infrastructure and storage capabilities in the energy sector.

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