Daily oil and LNG price update (OPEC deal)

Brent oil took off last night as markets rediscovered the OPEC deal. Brent rocketed 4.7% to $49.05 and Henry Hub hit $2.94mmBtu:

There’s lot’s of stories around that the OPEC deal is going to get done which will be no surprise to readers. The likely outcome is a 1mb/d cut. More important was the Russian response which was price negative:

“Whether an agreement will be reached, I can not say for one hundred percent, but there is a strong likelihood that it will be achieved,” Putin told reporters on Sunday after he attended the Asia-Pacific Economic Cooperation summit in Lima. “Main contradictions within OPEC if not yet eliminated, they can be eliminated.”

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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.