Global energy crash intensifies

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What a week for energy markets. These are the most crucial input prices of the global economy and they have become as volatile as crypto. The real economic implications of that do not bear thinking about.

China continued to annihilate its twin coal bubbles last week. Coking coal was limit down again though stabilised Friday night:

It is still far too high relative to destroyed fundamentals and the cost curve. Prices need to halve again.

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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.