Daily LNG price update (Original sin)

Thursday, 25 June 2015

The Brent oil price fell back last night for no apparent reason other than a strong US dollar to $63.52. News on the night was dominated the US weekly DOE inventory report which showed another sizeable draw that was offset by still strong production:

This is where one can find a bullish short term case for oil. US demand is firming with cheaper prices and the shale output peak is coming soon. If that transpires ahead of any rebound in the rig count then the pressure will be to the upside for a little while, until shale rigs, or Saudi, lift production again.

The indicative LNG contract price fell to $9.27mmBtu:

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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.