Spot NGLs Finish Broadly DN Friday but End Week Mostly Up
ORANGE BEACH, Ala. (DTN) -- U.S. spot natural gas liquids prices finished
broadly lower at the major supply hubs Friday with natural gasoline and ethane
down sharply while New York Mercantile Exchange oil futures plunged.
NYMEX September West Texas Intermediate crude oil futures settled down $1.15
Friday at $45.77 and on the week slid 77cts or 1.7% as the spot-month contract
rolled from August on Thursday.
The August NYMEX RBOB futures contract settled 4.29cts lower at $1.5633
gallon but on the week eked out a 0.28cts gain.
In the week ended today, Mont Belvieu LST spot propane advanced 1.625cts or
2.5% while Enterprise spot propane was up 1.75cts or 2.7%. Enterprise spot
propane ended the day valued at 60.6% of nearby WTI futures, up from 58.0% at
the same time last week.
At the Enterprise hub, normal butane moved 3.7% higher this week isobutane
advanced 4.1% and natural gasoline slid 2.2%.
Trade in spot propane was light to moderate at the Texas supply hubs and
thin at the Conway hub on Friday, brokers said. For the day, 190,000 spot
propane bbl traded at the Enterprise hub and 135,000 bbl transacted at the LST
hub. Only 40,000 Conway spot barrels changed hands Friday with the last deal
At Mt. Belvieu, LST spot propane and Enterprise spot propane both traded
0.625cts lower Friday afternoon at 65.875cts gallon and 66.0cts gallon.
Targa spot propane was done early session at 66.25cts gallon, down 1.25ct on
Conway spot propane traded 0.25cts lower Friday at 63.0cts gallon but
finished the week up 2.625cts or 4.3%.
Hattiesburg spot propane traded late morning at 66.0cts gallon and advanced
2.75cts or 4.3% on the week.
The Energy Information Administration Wednesday reported U.S.
propane/propylene inventories increased a larger-than-expected 3.5 million
bbl to about 65.7 million bbl during the week ended July 14. Compared to the
same time in 2016, stocks were down 21.7 million bbl or 24.8%.
EIA reported U.S. propane/propylene exports in the week ended July 14 at
737,000 bpd, down from 910,000 bpd in the previous week.
U.S. propane/propylene imports were reported at 96,000 bpd, down 1,000 bpd
from the previous week but 13,000 bpd more than in the same week last year.
EIA data showed implied demand for propane/propylene at 701,000 bpd during
the week, which was down 63,000 bpd from the week prior and 444,000 bpd less
than in the same week in 2016.
In Canada, Sarnia spot propane was seen unchanged Friday at 67.5cts gallon
but on the week advanced 4.25cts or 6.7%.
In other U.S. NGLs spot markets, Mt. Belvieu non-LST normal butane slid
0.5cts at 80.25cts gallon while Conway normal butane was seen late session at
75.75cts gallon, down 0.75cts on the day.
Mt. Belvieu non-LST isobutane traded 0.625cts lower at 80.125cts gallon and
Conway isobutane was valued at 85.0cts gallon, down 0.875cts.
Mt. Belvieu non-LST natural gasoline dropped 3.0cts Friday at 102.25cts
gallon as its premium to LST natural gasoline widened to 1.75cts from 1.375cts
at market close Thursday.
Conway natural gasoline was done at 103.0cts gallon, down 3.0cts.
Mt. Belvieu e/p mix was assessed 0.375cts lower at 24.375cts gallon while
Conway e/p mix was seen late session at 20.75cts gallon, down 0.25cts.
Gulf Coast purity ethane slid 0.625cts Friday at 25.125cts gallon but on the
week advanced 0.25cts or 1.0%.
In related markets, NYMEX August natural gas futures settled 7.3cts lower
Friday at $2.970 MMBtu and on the week was down 1.0cts or 0.3%.
EIA midmorning Thursday reported natural gas held in U.S. storage increased
a smaller-than-expected 28 Bcf in the week ended July 14. At 2,973 Bcf,
domestic gas held in storage was down approximately 299 Bcf or 9.1% from the
same time last year but up 141 Bcf or 5.0% from the five-year average of 2,832
Bcf, according to EIA data.
Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com.
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