Mont Belvieu Spots Harden, Conway Up Fractionally

Spot propane at Mont Belvieu built on its early-week gains Thursday and strengthened by another 1.125 to 1.25 cents compared to the Monday email Update. The late-week rise in values followed prices moving 1.875 to 2 cents higher early in the week. Conway spots, meanwhile, were little changed between the two reporting periods, although prices did move up a scant quarter cent. At the same time, Belvieu’s premium to the Midwest stretched out to 1.25 to 1.5 cents late in the week, up from about a half cent Monday. Market watchers note that lower crude oil prices are mitigating even higher values for propane. West Texas Intermediate on NYMEX Wednesday dropped as much as $1.24/bbl during the session, while Thursday trading saw losses doubling down on the slump.

Mont Belvieu non-LST propane mid-morning Thursday was trading at 106.50-107.25 cents/gal., higher by 1.125 cents for buyers and 1.5 cents for sellers. Low and high deals were reported at 106.125 and 107.875 cents. LST spots, at 106.75-107.375 cents/gal., were up 1.25 cents for buyers and 1.5 cents for sellers, with low and high trades posted at 106.00 and 108.00 cents.

The Group 140 (Conway) bid and offer was at 105.25-106.75 cents/gal. for a gain of a quarter cent for buyers and 0.875 cents for sellers. Low and high trades reported as of mid-morning were at 104.75 and 107.25 cents.

Results were mixed at Hattiesburg, where spots slipped a quarter cent for buyers but edged up an eighth of a cent for sellers. The bid and offer was at 106.75-110.50 cents/gal., with a single deal posted at 109.50 cents.

Canadian spots hardened over the week, rising 3.25 cents for buyers and 1.5 cents for sellers at Edmonton. Thursday trading stood at 76.00-76.50 cents/gal. Farther East, Sarnia spots, at 109.25-110.00 cents/gal., rose 1.25 cents for buyers and 1.75 cents for sellers from Monday.

Elsewhere, crude oil futures on NYMEX Thursday traded at $90.54/bbl, down 1.23% for the day. The Wednesday/Thursday plunge in the market followed an International Energy Agency report that said global demand for oil has declined dramatically in recent months.