Daily LNG price update (crash)

Tuesday, 25 August 2015

The Brent oil price is still in free fall, down 7% plus overnight to $42.26 as I write:

John Kemp is of the view that markets have given up on the Saudi strategy:

“It is not the role of Saudi Arabia, or certain other OPEC nations, to subsidize higher cost producer by ceding market share,” Oil Minister Ali Naimi told an audience in Berlin in March.

“Saudi Arabia is called upon to make swift and dramatic cuts in production. That policy was tried in the 1980s and it was not a success. We will not make the same mistake again.”

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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.