Daily oil and LNG price update (Doha dawn)

Wednesday 13 April 2016

The Brent oil price pinned its ears back last night up another 3.2% to $44.20. Henry Hub rebounded to $2.02mmBtu:

The trigger for another bounce was pretty vague, just more rumours of OPEC Doha freeze success. The price got as high as $44.70 before API US inventory data was released and showed another huge inventory build.

Markets are back where they were a few weeks ago, assuming OPEC has fired the magic bullet and looking for the marginal cost of production for US shale. When they find it the price will fall again.

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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.