What's Behind the Natural Gas Price Disparity? (PART2)

Continuing from Part 1

Before we discuss the reasons for higher natural gas pricing in Europe and Asia, I wanted to briefly mention why Canadian oil securities have been hit so hard in recent months.

Similar to the case seen in the U.S., many Canadian oil firms also produce natural gas. So as natural gas pricing has collapsed, this has weighed down on shares of many Canadian producers. Moreover, many of the Canadian oil trusts derive a large percentage of revenues from natural gas.  

But there are additional factors that have led the severe sell off seen in many Canadian oil and gas securities.