Daily LNG price update (2016 outlook)

Monday 25 January 2016

It appears I missed all of the fun. Well, not all of it. Brent was up 10% Friday night to $32 or so but it is still down $5 from when I left for a holiday. Henry Hub gas settled at $2.13mmBtu:

So, is the bottom finally in? I remain skeptical. A downside spike into the $20s is not what is needed. We need a sustained price slump deep into the $20s because:

US production is still holding up;
Iran is still coming with much more;
OPEC is still broken, and
the Mining GFC will progressively hit demand all year.

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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.