Australian LNGCommodities

Daily LNG price update (capitulation)

David Llewellyn-Smith
Monday 14 December 2015
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Brent oil capitulated Friday night, smashed -5.2% to $37.67 and fast approaching GFC lows. Henry Hub gas followed it down to $1.98mmBtu:

tvc_6ab368b8052f978101f069345d1ff020

The chart technicals show the GFC low is the only support left in the low $36s before it’s back to 2003:

tvc_054a39e48d9367621a785e38285b657f Honestly, I reckon we’re going into the low twenties now. First it will be because of the current oversupply and then it will be because the Mining GFC hammers global growth in an end-of-cycle event.

Tellingly, the selloff ignored a renewed crash in the US oil rig count, down 21 rigs to 702:

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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.