Daily LNG price update (China sag)

Tuesday, 29 September 2015

Brent oil was hit 2.5% to $47.41 last night as commodity carnage weighed. If it breaks below the $47 range then it’s on for a retest of the $43 lows:

That looks more likely than not today. There was not much broader news but a nice chart from Reuters shows how the pressure on shale remains high despite the rebound in the oil price:

We are certainly shaping up for an accelerated shakeout in US energy which ought to be price bullish. The problem is that same wider shakeout in all commodities is hammering global growth just as hard and demand is also in jeopardy. I more or less expect the latter to win out as emerging markets slide on.

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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.