Australian LNG

Via the AFR: The normally meek June quarter for electricity markets has been turned on its head with wholesale prices breaking records to an extent that is appalling experts and should scare energy users, regulators and governments.

Dalian soft: The spark is gone from Banana Man.

Via the ABC: Four Arab nations seeking to isolate Qatar over its alleged support for extremist groups have been angered by what they say is a “negative” response by the tiny Gulf nation to their demands for ending crisis in the region.

Dalian is soft again today but not decisively so: Big Iron is up anyway: Not sure why, the rebound is hitting turbulence.

Dalian is quiet today: I’m not calling any tops in the Banana Man bubble.

As always, look past sectarian and other rationales to the national interest to determine what is afoot in Qatar, via Bloomie: An alliance led by Saudi Arabia apparently enjoys Trump’s full support.

Via the AFR: East coast gas buyers say the federal government is likely to trigger its new powers to limit LNG exports at the earliest opportunity to help bring an end to a situation that Australian Industry Group describes as “disastrous” for manufacturers.

Banana Man is still in control at Dalian: Big Iron up: No idea how far it gets.

Big developments in oil over the weekend.

Via the AFR: Royal Dutch Shell has marked a milestone in its ground-breaking Prelude floating LNG project off north-west Australia, with the departure of the massive vessel from the South Korean shipyard where it was built towards its final location.

There’s nothing like good growth to upset Banana Man.

I thought he’d been whipped but how wrong I was.

As noted earlier this week, oil markets were stretched to the downside: Shorts are now puking: This is despite the data flow remaining quite bearish.

China is stimulating again so it’s time to buy Straya!

From Citi:  The oil bears look to have taken perhaps their final fling as money manager net positioning as a percentage of open interest fell to ~7% and just ~1% above the all-time low in 1Q’16 when oil prices fell below $30/bbl.

Dalian continues its recent pattern of firming at night and sagging during the day today: Big Iron is mixed: Big Gas is still stinky: Big Gold is up: Big Bubble is reeling: And Big Liar is as mendacious as usual as REA breaks out: As Australia goes ex-growth so does it’s share market.

From Morgan Stanley: As part of the downside risk stress-testing, we ran our top down US oil production model under a broad $40-60/bbl WTI price range assumption in $5/bbl increments.

From Credit Suise: Slip sliding away? With the sector falling more by the day, we thought it was worth an update on what stocks are pricing in, where balance sheets sit and what the Australian industry is doing (or not as the case may be).

The oil crash is intensifying: It appears markets have finally come around to my view that there is no shortage at all.