Spot Propane Ends Week at New Highs while WTI Futures Flat

    

   HOUSTON (DTN) -- U.S. NGLs prices moved broadly higher in light-to-moderate 
trade Friday with LST propane finishing just off a 35-month high and Conway 
spot propane ending the day at a more than 34-month high.

   NYMEX November West Texas Intermediate crude oil futures settled 11cts 
higher Friday but at a four-month spot high of $50.66 bbl, and on the week 
advanced 77cts or 1.5% as the spot-month rolled from October on Wednesday.

   The October NYMEX RBOB futures contract settled 2.46cts higher at $1.6684 
gallon and finished the week up 0.67cts or 0.4%. 

   In the week ended today, Mont Belvieu LST spot propane was up 5.75cts or 
6.6% while Enterprise spot propane advanced 5.125cts or 5.8%. Enterprise spot 
propane ended the day valued at 76.9% of nearby WTI futures, up from 73.8% at 
the same time last. 

   At the Enterprise hub, normal butane advanced 5.1% this week while isobutane 
rose 6.0% and natural gasoline was up 3.3%.

   At Mt. Belvieu Friday, LST spot propane was done early afternoon at 
93.375cts gallon, up 0.625cts on the day but down from a 93.75cts gallon, 
35-month high trade done late morning. Enterprise spot propane was seen flat 
midafternoon at 92.75cts gallon, unchanged from Thursday's more than 7-1/2 
month high. 

   Targa spot propane traded flat near midday at 93.625cts. 

   Conway spot propane last traded midafternoon Friday at 89.875cts gallon, up 
0.875cts on the day and 4.375cs on the week as it finished at a more than 
34-month high. Last winter, the price of Conway spot propane peaked on Feb. 2 
at 88.25cts gallon. 

   Hattiesburg spot propane traded early session Friday at 92.75cts gallon, but 
was pegged late day at 91.875cts gallon.

   In Canada, Sarnia spot propane was heard 2.75cts higher at 95.75cts gallon 
and finished the week up 6.25cts or 7.0%.

   The Energy Information Administration midmorning Wednesday reported U.S. 
propane/propylene inventories dropped 1.4 million bbl during the week-ended 
Sept. 15 while a DTN survey showed expectations for a 950,000 bbl stock build. 
At 80.8 million bbl, domestic propane/propylene stocks were down 20.9 million 
bbl or 20.6% versus the same time in 2016, according to EIA.

   Agency data showed U.S. propane/propylene exports at 1.065 million bpd in 
the week-ended Sept. 15, up from 180,000 bpd in the week prior.

   Implied demand for propane/propylene was reported at 982,000 bpd for the 
week-ended Sept. 15, down from 1.210 million bpd in the week prior.

   EIA data showed U.S. propane/propylene imports at 134,000 bpd in the week, 
up from 122,000 bpd in the week prior and 83,000 bpd in the same week last year.

   In other U.S. NGLs spot markets, Mt. Belvieu non-LST normal butane advanced 
2.375cts Friday at 106.125cts gallon while Conway normal butane rallied 
3.125cts at 107.375cts gallon, with both finishing at more than seven-month 
highs.

   Mt. Belvieu non-LST isobutane and Conway isobutane were both valued late 
Friday afternoon at more than seven-month highs, with the former up 3.0cts at 
106.625cts gallon while the latter advanced 4.5cts at 112.00cts gallon.

   Mt. Belvieu non-LST natural gasoline was seen late session at 120.875cts 
gallon, up 1.375cts and at a near 27-month high, while Conway natural gasoline 
added 0.25cts to hit a more than 6-1/2 month high at 117.25cts gallon. 

   Mt. Belvieu e/p mix was assessed at 27.125cts gallon, up 0.375cts, and 
Conway e/p mix moved 1.0cts higher at 19.75cts gallon.

   Gulf Coast purity ethane was seen late session at 27.625cts gallon, up 
0.5cts for the day and 0.875cts higher on the week.

   In related markets, the NYMEX October natural gas futures contract settled 
1.3cts higher Friday at $2.959 MMBtu and on the week slid 6.5cts or 2.4%. 

   EIA Thursday reported natural gas held in U.S. storage increased 97 Bcf in 
the week-ended Sept. 15. At 3,408 Bcf, domestic gas in storage was down 136 Bcf 
or 3.8% from the same time in 2016 but up 67 Bcf or 2.0% from the five-year 
average of 3,341 Bcf.

   Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com. (c) 2017 
DTN. All rights reserved.