Daily LNG price update (Oz LNG a “grave mistake”)

David Llewellyn-Smith

Thursday, 17 September 2015

Brent piled on 5% last night to end at $49.92. The major pulse came from falling US output and inventories:

Or, from john Kemp, a longer term chart form the EIA:

Clearly this is a more solid underpinning for prices than we had during the last correction when shale oil was still rising. Some adjustment to global supply is now underway at the marginal cost. With the Fed very unlikely to hike tomorrow we’ve the stuff of a solid bear market rally in the making here.

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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.