Daily LNG price update (browsing)

Monday 25 May 2015

The Brent oil price fell back Friday night as data and a strong US dollar weighed. On the former, the US rig count fall is over, down just one to 885:

So, what sort of recovery will we see? V-shaped? U-shaped? Rigs do follow price with a lag. In the GFC, the recovery was very sharp as prices rebounded from $30 to $70. My bet is we’ll see a modest rebound again this time given where prices are. Then a plateau as prices pull back again. I don’t think the market is ready to see a rising rig count.

That left the indicative LNG contract price sitting at $9.57mmBtu:

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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.