Origin papers over elephant in room

Monday, 29 June 2015

From Origin today:

I’ve said if before and I will say it again:

LNG spot markets used to trade higher than contract volumes and the arbitrage was minimal. No longer. Now LNG spot trades at very deep discounts of $2mmBtu to contracts and the arbitrage is likely enduring and within the power of consumers to keep it that way as they resell redundant contract tonnages.

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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.