Daily LNG price update (China default))

Monday 30 November 2015

The Brent oil price faded on Friday night as a rampant US dollar broke through the ton on the index:

It is just 30 pips from breaking out and making a run for the 2002 peak at 120. My view is that this is inevitable and when it comes it will weight heavily on oil, throwing up two outcomes:

US shale will come under even more pressure as its prices received are smashed, and
it increases the prospect of Saudi de-pegging from the US dollar, which would protect its revenues even as its oil price crashed.

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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.