There is no change in the dynamics for the global oil market. We’re in some form of equilibrium as OPEC cuts and the US expands production. Downside is protected by OPEC jawboning, upside by the rising US rig count.
LNG on the other hand is weakening fast. One of the big downsides for the oil balance is that more US rigs produce more US gas as a byproduct and as winter demand passes the price is crashing:
The price is bouncing off support around $2.60mmBtu but I expect it to go lower yet as rig numbers keep climbing:
Advertisement