NGL Prices Fall As Gas Prices Hold Steady
Utilities continue to switch from gas to coal.
Sour Spring For NGLs
What winter giveth, spring taketh away was the message this year as the price support provided by a late-breaking winter saw utilities turn their attention from gas to coal in the spring.
NGL Prices Continue To Fall
NGL prices remained volatile the first week of June as trading was very active, but this didn’t translate into improvements as only Conway isobutane showed an increase in value.
NGL Prices, Margins Move In Opposite Directions
Butane took a page out of ethane’s book and moved in opposite directions at the hubs for the second time in as many weeks, but only slightly.
Ethane Cracker Outages Negatively Impacting Light NGL Prices, Margins
The good news, in the midst of falling prices, is that heavy NGL valuations relative to crude prices may have reached the bottom, according to En*Vantage.
NGL Prices Approaching Parity
Mont Belvieu and Conway NGL prices continued to approach parity in several cases the third week of May.
NGL Margins Took Downturn In Early Spring
However, natural gas prices were able to grow in the month as there was sufficient cooling demand in the early part of April to help prices trend up.
Shoulder Season Causes Natural Gas, NGL Prices To Dip
Energy commodity prices dipped this week as consumer demand remains down during the shoulder season. Natural gas prices experienced very large price decreases with NGL prices falling at a slower rate at both hubs the first week of May.
Gas Price Increases Causing Coal Displacement
Natural gas liquids (NGL) prices were up across the board at both hubs the final week of April. These increases improved frac spread margins at both Conway and Mont Belvieu.
Gas Prices Remain Over $4; Rig Count Remains Flat
Natural gas prices continued to grow the week of April 17 as cooling demand remained solid and gas-directed drilling is still well behind liquids production.