Daily LNG price update (price war begins)

Sunday 8 February 2015

The big news in oil today is the weekly US rig count which tumbled again Friday, unsurprisingly:

We’ve months yet to run with this but by mid year US oil production is going to be stalling. A few charts from Reuter’s John Kemp shows why:

Those are ripping depletion rates in the lower caliber wells that make the majority of production very price sensitive. The EIA sees production falls from May:

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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.