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6 Pages

Strong Contango Emerges in Propane Market as Supply Glut Drags On


Strong Contango Emerges in Propane Market as Supply Glut Drags On

Report summary

Since the beginning of May, spot propane prices have declined from $0.54/gal to $0.38/gal, with some US Gulf Coast locations trading as low as $0.33/gal. Weak global demand for US exported LPG combined with a tight VLGC market have helped , the Mont Belvieu propane futures curve has recently moved into steep contango between the June 2015 and February 2016 contracts of ($0.11/gal). Such a deep contango indicates that the market is concerned with oversupply. 

What's included?

This report includes 1 file(s)

  • Strong Contango Emerges in Propane Market as Supply Glut Drags On PDF - 390.75 KB 6 Pages, 0 Tables, 7 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.

  • Stubborn Production and Disappointing LPG Exports
  • US Propane Seeking Domestic Petchem Solvers and Possibly Fuel Demand
  • Can US Petrochemical Market Solve a Propane Supply Glut?

In this report there are 7 tables or charts, including:

  • Stubborn Production and Disappointing LPG Exports
    • US Waterborne LPG Exports and Terminal Capacity
    • Propane Freight Rates From USGC to Europe and Japan
  • US Propane Seeking Domestic Petchem Solvers and Possibly Fuel Demand
    • United States Ethylene Cash Costs
  • Can US Petrochemical Market Solve a Propane Supply Glut?
    • LPG Volumes at the Flexible Steam Cracker
    • US Propylene Nonfuel Use Stocks at Bulk Terminals
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