Thursday, February 26, 2015
Spot propane at Mont Belvieu and Conway, Kan. edged still higher Thursday, Feb. 26, building on early-week gains. Belvieu prices climbed another 1 to 1.25 cents compared to the Monday email Update, while the Midwest rose 0.625 cents. Monday saw the Texas trading hub up a quarter cent to 0.375 cents, while Conway prices hardened by a penny from the previous reporting period. Meanwhile, weather demand has finally kicked in, with the Energy Information Administration reporting that U.S. propane inventories fell 2.2 MMbbl the week ended Feb. 20. That draw was preceded by a sharper 3.5-MMbbl decline a week earlier.
Overdue winter freezing temperatures in much of the country, even as spring approaches, have marketers eyeing potential late-season fills. At press time, a menacing winter storm was barreling across the Southeast on a range from Texas up through southern Virginia. In addition, a storm emerging from the West’s Four Corners region was forecast to head into the Upper Midwest, bringing ice, snow, and rain. Winter conditions in New England were reported to be causing record-breaking natural gas demand, straining a critical pipeline flow point into the region. Units at multiple East Coast refiners were also said to have restarted after experiencing operational issues due to cold.
Mont Belvieu non-LST spot propane mid-morning Thursday was trading at 60.00-60.375 cents/gal., higher by 1.25 cents for buyers and a penny for sellers from Monday. Low and high deals were reported at 59.875 and 60.50 cents. LST spots, a quarter cent under at 59.75-60.25 cents/gal., were up a penny for buyers and sellers, with low and high trades posted at 59.75 and 63.75 cents.
The Group 140 (Conway) bid and offer were at 56.375-57.00 cents/gal. for a gain of 0.625 cents for buyers and a half cent for sellers. Low and high deals were up on the board at 56.00 and 57.00 cents as of mid-morning.
Canadian propane also posted some modest late-week gains. Edmonton spots Thursday stood at 26.25-26.75 cents/gal., up a half cent for buyers and sellers from Monday. Sarnia propane was trading at 73.75-74.00 cents/gal., higher by a penny for buyers and sellers.
Elsewhere, NYMEX crude futures retreated Thursday, giving up much of the gain scored in the previous session. April crude traded at $49.32/bbl, down $1.67, or 3.3%. On Wednesday, West Texas Intermediate reclaimed the $50/bbl level and settled at $50.99/bbl, up $1.71, or 3.5%. April natural gas Thursday was at $2.727/MMBtu, down 13.6 cents, or 4.8%.
Overdue winter freezing temperatures in much of the country, even as spring approaches, have marketers eyeing potential late-season fills. At press time, a menacing winter storm was barreling across the Southeast on a range from Texas up through southern Virginia. In addition, a storm emerging from the West’s Four Corners region was forecast to head into the Upper Midwest, bringing ice, snow, and rain. Winter conditions in New England were reported to be causing record-breaking natural gas demand, straining a critical pipeline flow point into the region. Units at multiple East Coast refiners were also said to have restarted after experiencing operational issues due to cold.
Mont Belvieu non-LST spot propane mid-morning Thursday was trading at 60.00-60.375 cents/gal., higher by 1.25 cents for buyers and a penny for sellers from Monday. Low and high deals were reported at 59.875 and 60.50 cents. LST spots, a quarter cent under at 59.75-60.25 cents/gal., were up a penny for buyers and sellers, with low and high trades posted at 59.75 and 63.75 cents.
The Group 140 (Conway) bid and offer were at 56.375-57.00 cents/gal. for a gain of 0.625 cents for buyers and a half cent for sellers. Low and high deals were up on the board at 56.00 and 57.00 cents as of mid-morning.
Canadian propane also posted some modest late-week gains. Edmonton spots Thursday stood at 26.25-26.75 cents/gal., up a half cent for buyers and sellers from Monday. Sarnia propane was trading at 73.75-74.00 cents/gal., higher by a penny for buyers and sellers.
Elsewhere, NYMEX crude futures retreated Thursday, giving up much of the gain scored in the previous session. April crude traded at $49.32/bbl, down $1.67, or 3.3%. On Wednesday, West Texas Intermediate reclaimed the $50/bbl level and settled at $50.99/bbl, up $1.71, or 3.5%. April natural gas Thursday was at $2.727/MMBtu, down 13.6 cents, or 4.8%.
