Daily oil and LNG price update (Henry Hub rocket)

Tuesday, 21 June 2016

The Brent oil price was firm again last night at $50.40 but even it can’t touch US gas which is off to the races at $2.74mmBtu:

There was a little news on oil though most of it bullish with strikes mulled in Nigeria and more conflict in Libya but both were pretty minor. Peripherally, Nigeria’s currency is crashing post float which will help it stabilise revenues (at the price of inflation) which may assist in resolving its internal conflicts. I still think oil is going to bounce around between $45-50 for now.

Of greater interest is the bull run in US gas. It has multiple drivers in demand growth, from Market Realist:

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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.