Daily oil and LNG price update (smack)

The Brent oil price was hammered -5% lower last night and Henry Hub finally fell over as well, down 7.3% to $2.77mmBtu:

tvc_7f7b0ea4975ec610b12852c3900f65ca (1)

News overnight was a little price bullish with the Nigerian ceasefire agreement suddenly appearing pretty thin. Libyan rumbles suggest a possible doubling of output but that is still up in the air. I suggest that the more important shift in both cases is towards things getting better not worse so markets can price incremental improvements.

I expect more downwards pressure ahead. The combination of negatives noted Monday is compelling and there is not need for more US rigs. We may have to dip to $45 or even $40 to snuff that recovery out.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

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.