Daily LNG price update (Gorgone)

Thursday 10 December 2015

The Brent oil price was weak but managed to finish unchanged at $40.23. Not even bullish DOE inventory data helped:

Which is right, I think. US shale is no longer the answer to the oil glut. With 1.5-2 million barrels per day surplus now and Iran coming with one million more, if nothing changes soon then prices will need to fall to conventional oil cash breakevens. Sorry!

The indicative oil-linked contract LNG was stable at $5.63mmBtu:

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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.