The Brent oil price was virtually unchanged last night at $48 despite the rather gloomy oil outlook from the IEA which does not see oil prices rising back towards $80 until 2020. The IEA outlook is still much better than futures markets prices for 2020:
In defiance of both, STO and ORG see oil back at $80 in 2017 (though there is some offset in an assumed 80 cent dollar for the former), so the IEA view does not bolster local LNG investment cases and further raises the prospect of asset impairments in the near future. As STO said in its recent strategic review:
“Key risk” my butt. This is the base case. It also looks like some very heavy damage is coming on the equity raising, from The Australian: