Mid-Month to Mid-Month: More Low Down

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Energy players at press time were voicing dismay as NYMEX crude oil futures failed to hang on to gains that were prompted by the International Energy Agency (IEA) raising its global oil demand forecast. IEA said worldwide demand would grow by 1.6 MMbbld this year, an upward revision of 200,000 bbld from its previous forecast. Rather, news of China’s currency devaluation caused not only commodity markets to retreat but stocks to tumble sharply as the yuan’s falling value sent shock waves across the globe. On Aug. 11, the People’s Bank of China set in motion what it described as a pledge to let market forces dictate the currency’s value. But the action called into question the economic health of the world’s second-largest economy. NYMEX crude oil futures fell 10 cents Aug. 12 to $42.98/bbl.

Meanwhile, U.S. propane prices continued to backpedal. Mont Belvieu average posted prices entered mid-July at 49.187 cents, then climbed to 50.625 cents a week later. As the month ended, however, prices were back under 50 cents to 49.062. They then recalled nearly 3 cents to fall to 46.250 cents as August rolled up. This week prices are little changed at 46.375 cents.

Propane at Conway, Kan. held about an 11- to 14-cent discount to the Texas hub, with the mid-July average at 37.270 cents. The next week prices dipped to 36.770, then to 34.520 as the month wound down. August’s arrival had prices up to 35.145 cents, and this week they are higher still at 37.958 cents.

The Mont Belvieu spot market was at 39.50-40.50 cents/gal. in mid-July, changing little a week later when the bid and offer were at 39.75-40.25 cents. As the month ended spots gave up 1.5 cents to decline to 38.25-39.00 cents/gal., and August’s arrival saw another drop to 37.00-37.375 cents. This week spots have edged lower to 36.50-37.25 cents.

Spot propane at Conway, while mostly tracking lower over the mid-month period, nonetheless did manage to rise and fall. Mid-July spots were at 33.50-35.00 cents/gal., and rose to 33.875-34.00 cents the next week. The month closed out down about 2.5 cents at 31.25-31.50 cents, and as the new month showed up the bid and offer was little changed at 31.25-32.00 cents. This week the Group has strengthened to 33.75-34.25 cents.

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