Daily oil and LNG price update (Doha schmoha)

The Brent oil price shrugged off the Doha dud last night recovering much of its lost ground even though the Kuwait strike was settled. It settled at $43.12 and Henry Hub gas was up a bit too to $1.93mmBtu:

To me this is nonsense but markets seem so persuaded that the glut is passing that the oil price is bullet proof for the time being. Yet at current levels it will still take two years to balance the market. If we get to $50 then US shale will return. And Saudi Arabia is now standing over oil with every intention of keeping the price down. Markets tried to get short least week but were stopped out, from John Kemp:

I still expect lower prices but it’s in the hands of sentiment for now.

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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.