Australian LNGCommodities

Daily oil and LNG price update (flame out)

David Llewellyn-Smith
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The Brent oil price flamed out spectacularly overnight dropping dropping -3.5% to $49.09. Henry Hub gas went the other way, jumping to $2.67mmBtu:

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Oil was clobbered as Nigeria begins negotiations with its militants, Iraq boosted output, Libya opened a port and the short squeeze died, from John Kemp:

COMBINED BRENT AND WTI POSITIONS (LONG AND SHORT)

I would not be at all surprised to see oil sink straight back to $40 here, OPEC jawboning be damned. I lifted my investment bearishness on LNG last week owing to it relying overly upon unpredictable political calculations to come to fruition but in economic terms oil still looks to be in trouble in H2.

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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.
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