Daily LNG price update (up)

Thursday 30 April 2015

Brent oil surged again last night to $66.77 as the US faced off with Iran in the Straits of Hormuz, shale production hopes rose and the US dollar was hammered again.

Clearly the path of least resistance remains up. And I expect the rally to persist at least until we see a bottom in US rig counts and subsequent plateau in production.

However, beyond that I still expect retracement. The average US shale oil price was $80 coming into this shakeout but it’s a lot lower now and will keep falling, from Citi:

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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.