Daily LNG price update (oil crash 2.0)

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Brent oil collapsed 6% overnight to $56.78 as I write. There is no particular reason for it. All of the reasons pointed out here for months, really:

  • US shale resilience at $60
  • global oversupply and an imminent Iran deal
  • China weakness
  • strong US dollar

And, like iron ore, the recovery was largely built on a traders arbitrage that is now breaking so the unraveling is swift. Some technicals from Soc Gen give us a lead on how low we’ll go:

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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.