Daily LNG price update (slip sliding away)

Friday, 24 July 2015

Brent oil posted another new low overnight, down 1% to $55.50 as I write. There was no real reason for it other than good sense. $50 beckons. Even more troubling for oil and LNG producers, the futures market has broken down completely now and is in free fall for years out:

All time frames are at new lows and falling. For perspective consider that Brent at $69 in 2019 is still some 25% below all-in breakevens for Australia’s east coast LNG white elephants. Get on the with the write downs you plodding behemoths!

The indicative LNG contract price slipped to another new low at $7.77mmBtu:

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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.