Daily LNG price update (rig rout)

Monday, 16 February 2015

The oil price poured it on again Friday night, up another almost 4% to $61.48 as I write. The culprit this time was another 84 rigs being shelved in the US on the week:

A sensible enough response! The indicative LNG contract price jumped to $8.94mmBtu:

Alas, however, that is not being reflected in the Asian market spot price. The new front month contract this week is April and it’s sitting at a debilitating $6.60mmBtu:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.