Daily LNG price update (weak bounce)

Wednesday, 29 July 2015

The Brent oil price managed a weak bounce overnight, rising off lows to $53.19 as I write. The chart is not encouraging:

We’re finding support at the March lows but the $48s beckon for a retest and I don’t think that will hold, either. The glut is too big, the macro backdrop too hostile and feedback loops in prices too extreme. Then there is this, from Platts on US shale:

Taken broadly, each rig averaged 14,472 b/d this May, up from 5,500 b/d per rig in May 2014, 4,338 b/d in May 2013, 3,030 b/d in May 2012, 2,065 b/d in May 2011 and 2,600 in May 2010, according to a Platts analysis.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.