Big Gas breaks on oil

Big Iron has responded soberly to the building price bubble today as Dalian opens -2%. BHP is -0.8%, RIO 0.6% and FMG 0.2%:

The FMG bubble got some support after 58% iron ore rocketed and the discount dropped to -16%:

Big gas is finally responding to oil with WPL -1.5%, OSH -1.2%, ORG -2.3% and STO -3.6%:

Still, LNG shares are well behind the falls in the underlying commodity:

I do expect further catch-up.

Big Gold is consolidating with RRL, 0.7%, NCM -0.3%, IGO -2.6%, SBM -2.8% and EVN 0.5%:

It may be that the pullback is done. If oil falls further, as I expect, then gold aught to rise as even less US tightening is priced.

Big Usury is still trading sideways waiting for the RBA:

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.