Frac Spread: NGL Dog Days
The NGL market is experiencing a down period this summer as infrastructure outages, construction delays and cool weather have combined to make this a lost season.
Frac Spread: Headwinds Continue To Trouble Ethane Prices
As July draws to a close, ethane prices remain in free fall with major headwinds working against them, primarily in the form of plant outages that have severely reduced domestic cracking capacity.
Frac Spread: Limited Cracking Capacity Continues To Plague Ethane Prices
Ethane prices had been expected to begin their long-awaited improvement this summer, but that progress appears to be getting stunted once again.
Frac Spread: Low Demand Benefits Propane Reloading
Ethane prices had the largest decrease the first full week of July as it remains closely related to gas prices, which tumbled this week. Ethane was also hurt by the continued outage of several crackers undergoing expansions or maintenance.
NGL Prices Follow Crude, Gas Downturns
NGL prices were largely stagnant, with a slight trend down at the end of June as they followed losses for natural gas price and crude. Overall, NGL prices largely remained flat compared to the levels posted in the second quarter.
Uncertainty In Iraq Increasing LPG Demand
There were notable price increases for butane and isobutane, which are benefitting from increased crude prices. In addition, propane prices rose at both Mont Belvieu and Conway as the uncertainty in Iraq and its hydrocarbon production is also causing a mild run-up in its value.
Frac Spread: Crude Price Gains Supporting Heavy NGL Prices
NGL prices rose across the board at both hubs, aside from Conway isobutane, which continued to plummet. The full reasoning behind the high premium and the sharp drop in value of Midcontinent isobutane prices has yet to be determined.
Frac Spread: Conway Isobutane Prices Returning To Normal
The Conway isobutane price spike came to an abrupt end the first week of June with a 14% loss in value that saw its premium over Mont Belvieu prices get slashed in half. Capacity in the region is returning, which is providing an outlet for the product.
Frac Spread: NGL Prices Remain Static, But Dynamics Changing
Current demand levels for NGL are flat, but market dynamics support price improvements in the near-term. Both ethane cracking and petrochemical capacity are expected to increase shortly as plant turnarounds and expansions are nearing completion.
Frac Spread: Propane Prices Take Downturn As Demand Forecast Could Be Off
Summer is fast approaching and should finally lead to increased cooling demand that will help improve gas prices.