Daily LNG price update (splat)

Thursday, 22 October 2015

The Brent oil price has hit a wall, down another 1.6% last night to $47.90 as I write. The main culprit was US inventories which boomed:

At this rate the US will run out of storage capacity long before the refinery maintenance season is over. Excess oil will be dumped and prices crash. Inventories are in a race with falling US production, from Reuters:

Drillinginfo, a consultancy with proprietary data, told Reuters well productivity has fallen or stabilized in the top three U.S. shale fields – the Permian Basin and Eagle Ford of Texas and the Bakken of North Dakota – since July or August.

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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.