Daily oil and LNG price update (OPECked)

The Brent oil price was hit more solidly last night as the news that OPEC’s freeze is on the verge of new highs in output instead percolates bullish mindsets. Brent sank -3% to $45.90 while Henry Hub gas was hit to $2.05mmBtu:

Also hurting prices was another big Cushing build in the US though that has been taken in the market’s stride until now so is more important as a reading of sentiment that a problem in itself. At this stage it appears markets suddenly doubt whether OPEC is standing behind them as they buy, from Reuters:

“Our high side parameters for both WTI and Brent have been achieved and we would strongly suggest against purchases anywhere across the energy spectrum, especially off the weekly EIA data,” said Jim Ritterbusch of Chicago-based oil markets consultancy Ritterbusch & Associates.

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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.