Daily LNG price update (rig revival)

Monday 21 March 2016

The Brent oil price popped then dropped Friday night to $41.42 and the brave might be tempted to call a top. Henry Hub fell as well to $1.89mmBtu:

The news that upset buying momentum was that the US oil rig count bottomed out, up one to 387, charts courtesy of Zero Hedge:

With rigs so low we’re not about to see any surge of supply. But it is symbolic that the rally in oil is approaching thresholds where shale will return. BofAML has a great chart that sums it up:

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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.