Australia is facing a steeper-than-anticipated 25 per cent slump in LNG export earnings by next financial year, dragged down by a slide in crude oil prices and oversupply that is starting to hit global gas markets, according to the federal government’s commodities forecaster.
The Office of the Chief Economist has wiped $11 billion from its expectations for LNG export revenue for the next two years. The reduction comes after this year’s swift pullback in oil prices, amid changes in the production policy of the Organisation of the Petroleum Exporting Countries (OPEC) oil cartel and weaker than expected global demand.
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