Daily LNG price update (Brent breakout!)

Wednesday, 7 October 2015

The Brent oil price took off overnight up 5.5% to $51.96. The chart shows a clear bullish break out from a neutral symmetrical triangle pattern:

Upside resistance is at $54 and then the low $60s. This is a part market rebalancing and part Fed delay story. The first is premature and can’t run through $60 without resuscitating US shale. The second is its own death knell given it will firm up Fed rate hikes. So my guess is we pull up in the mid-$50s but we shall see.

The main trigger for the jump was comments from OPEC via Reuters:

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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.