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We only have time for a “flash” blog today.
Crude prices bounced up overnight, with Brent closing up ~2% to US$35.16 and WTI up a similar amount to US$33.06.
News of a potential March meeting of OPEC members (and Russia) to follow up recent discussions about fixing production at January 2016 levels appeared to give the bulls some comfort.
Why that was is a mystery to us. Iran won’t join in. Russia and Venezula will cheat if they can. So might everyone else. January 2016 is a record month for most (including the KSA). Etc.
Henry Hub was flat at US$1.77.
LNG and international gas
Well it finally happened – the first LNG cargo has now left the USA (the first ex-Alaska anyway), duly bound for Brazil. In due course Henry Hub will have to feel the consequences of gradually increasing US exports.
Elsewhere in the LNG world, the media reported that a large buyers’ cartel could be forming between Japan’s Jera, Korea’s Kogas and China’s CNOOC.
Sellers will be asking themselves – “haven’t these guys heard of World War 2?“
Quote of the day
The potential next President of the USA demonstrating yet again why the voters love his candour and colourful turn of phrase:
“Mitt Romney, who was one of the dumbest and worst candidates in the history of Republican politics, is now pushing me on tax returns. Dope!” Donald Trump