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Propane tightens to historic highs amid crude oil doldrums


Propane tightens to historic highs amid crude oil doldrums

Report summary

Propane prices at Mont Belvieu gained $0.25/bbl to close August 1 at $31.04/bbl (73.9 cpg) or 63% of WTI, even as WTI prices dropped by $1.01/bbl to close at $49.16/bbl. Prices increased again by 1.4 cpg to close at 75.3 cpg or 64% of WTI on August 2. This price action began in July with propane growing by about 11.6 cpg or 18% with July prices averaging 59% of WTI. This July average is the seasonal highest since 2011 (66%), when the US was transitioning from being a net LPG importer to becoming a net exporter. This strong relation to WTI could become the new normal as global demand growth re-links US propane prices to crude oil after several years of supply glut.

What's included?

This report includes 1 file(s)

  • Propane tightens to historic highs amid crude oil doldrums PDF - 393.26 KB 5 Pages, 2 Tables, 9 Figures

Description

This NGL Insight report highlights a key issue surrounding this topic, and discusses the implications for those involved.

For market participants, suppliers, and advisors who need to look at current industry trends, risks and issues around this topic, this report gives you an expert point of view to help inform your decision making.

Wood Mackenzie provides detailed commercial and strategic insight into the North American NGL markets. Our data-rich analysis is driven from our integrated energy and petrochemicals research, which gives you a regional and national perspective on ethane, propane, butanes and pentanes.

From gas processing to exports, we help you to understand the future direction of the NGL markets and make key decisions.

  • Delayed Market Response
  • Looking at the Bigger Picture
    • Global Propane Prices

In this report there are 11 tables or charts, including:

  • Delayed Market Response
    • Propane Futures Relative to WTI
    • Propane Futures Relative to WTI: 1Q vs 2Q
  • Looking at the Bigger Picture
    • US LPG Exports
    • Global Propane Prices Relative to WTI
    • Propane tightens to historic highs amid crude oil doldrums: Image 9
    • Propane tightens to historic highs amid crude oil doldrums: Table 2
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