Today we have time only for a very short flash blog given other competing work commitments (and did we mention there is a Test Match in Adelaide today?)
The Thanksgiving holiday over in the States meant that very little trading in crude took place overnight. Accordingly, London and New York both closed flat at US$49.00 and US$47.96 respectively.
Henry Hub managed to rise a few cents following a draw on gas inventories, closing at US$3.03.
The smart boys and girls over at Goldman Sachs have recently developed a theory about how high oil prices are good for the global economy, which they have expressed as follows:
“The difference between today and the 1970s is that oil creates global liquidity through a far more sophisticated financial system,. More sophisticated financial markets in the 2000s were able to transform this excess savings into greater global liquidity that increased asset values, lowered interest rates, and improved credit conditions that spanned the globe.”
So we in the oil patch are not being selfish hoping for higher prices – its for the good of everyone not just our wallets!
LNG and international gas
A recent comment from the President-Elect in a discussion about how US coal might benefit form higher US LNG exports:
Quote of the day
Russia’s Energy Minister, Alexander Novak, explaining why a freeze is really a cut:
“According to our plans, (Russia’s) oil output is going up next year. If we keep production at the current level we are making our contribution, for us that essentially means a cut of 200,000-300,000 barrels per day (in 2017).”
Expect all OPEC members to apply the same logic.