Australian LNG

Big iron has hit a big brick wall today as Dalian pukes it’s crazy overnight rally down -4% at the open.

A couple of stories from Bloomie add to my bearish morning report on oil.

Big iron continues its lunatic run higher today with BHP up 2.3%, RIO 3.9% and FMG 3.9%: Dalian is struggling to hold its Friday evening gains owing to the rising port stocks but BHP is even ignoring its Samarco deal accident so there’s no stopping this runaway truck.

The Brent oil price rallied Friday night to $50.65 and Henry Hub gas continued to charge higher at $2.99mmBtu: Underneath this, however, oil had a very bad day and I would not be at all surprised to see it come under near term pressure.

Big iron is up and away despite clearly negative Chinese PMIs.

How’s that Banana Republic treatin’ ya?

Your shout!

From Goldman on oil and Nigeria: The attacks have so far cut oil production by some 600,000 barrels a day.

The story so far for commodities in 2016 has one of extreme volatility.

Can we call it a “dead cat”?

The Brent oil price jumped with broader markets overnight to $49.28.

The ASX is partying on today as S&P500 futures have climbed all day and thus last night’s damage is forgotten.

From Macquarie Bank:  Gold was one of the clear winners in the aftermath of the UK’s referendum on EU membership, which was won by the leave side.

Some days equities really are amusing.

From the FT: Saudi Arabia’s new oil minister has signalled an end to the worst of the oil glut and indicated the Opec kingpin is preparing to reassert a degree of control over the market after two years of letting prices fall.

Bremain continues to be priced with shares broadly up.

The Brent oil price fell sharply last night to $49.80 as I write.

It makes no sense at all but big iron is up today is Dalian rises 3%.

The Brent oil price was firm last night at $50.94mmBtu: There was no reason for the bounce beyond fading worries about Brexit.

Big iron ore is getting hit today for no obvious reason.

The Brent oil price was firm again last night at $50.40 but even it can’t touch US gas which is off to the races at $2.74mmBtu: There was a little news on oil though most of it bullish with strikes mulled in Nigeria and more conflict in Libya but both were pretty minor.

From Newport Consulting new Mining Business Outlook: We consulted key industry leaders, including Gina Rinehart, to collate the most prevalent outlooks, challenges and opportunities facing the mining sector in 2016.

From Morgan Stanley helped put a rocket under LNG today: We increase our long-term oil price assumption to US$80/bbl (from US$60/bbl) from 2019, which is consistent with Morgan Stanley’s North American energy team.