Daily oil price update (Holy Grail halved)

Monday, 27 July 2015

The Brent oil price continued its march lower Friday night ending down another 2% at $54.63. The culprit was easy enough to find. The US rig count took off, up 19 TO 876:

I continue to target $50 but it has to be said that if we get a decent run of rigs then we’re going to blast through that. Shale’s cash cost is much lower and it may well take a fall to that level to take enough production out.

The indicative LNG contract price fell to $7.65mmBtu:

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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.