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The Brent oil price plunged -4% last night to $47.37 as an inept Saudi Arabia flopped all over its own deal:
Pesky Iraq and Iran have declared that they will not cut and Saudi has declared neither will it if they don’t. What did Saudi think its enemies would do when it panic back-flipped on its own market share strategy? At least prices are now falling to apply some pressure. Today I’m less sure that the deal will get done given how bumbling the Saudis are.
Turning to LNG, the indicative oil-linked contract price tumbled to $6.63mmBtu:
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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.