With such a massive additional supply of LNG now inevitable i wonder if LNG price will disassociate from POO? i.e. in past the two have been highly correlated. POO falls and LNG follows. Generally POO is the driver. But I expect POO will bottom over next 6 months when Brent hits $50. This is only 12% below current oil price. However, i reckon LNG price will keep falling. How low it goes is anyone's guess but LNG plants cost 10s of Billions to build and bring into production. Hene, i can't see any CEO being willing to simply close these giants down and allow LNG price to recover. It may be 3 yrs before LNG does a significant turn around and goes above US$12/mmBTU. NW shelf prod will be $14-$15. Currently LNG at $8.
OSH Price at posting:
$6.89 Sentiment: Sell Disclosure: Held
