US Spot NGLs Finish Mostly Higher with NYMEX Oil Futures
ORANGE BEACH, Ala. (DTN) -- U.S. spot NGLs finished up at the key supply
hubs Friday, with the exceptions of ethane and Midcontinent butane, as most
products tracked higher with advancing spot-month New York Mercantile Exchange
Expiring NYMEX August West Texas Intermediate crude oil futures settled up
$1.00 at $70.46 bbl while the September WTI contract finished 2cts higher at
$68.26 bbl. On the week, the August WTI contract dropped 55cts or 0.8%.
In the week-ended today, LST spot propane slid 0.75cts or 0.8% and
Enterprise spot propane dropped 1.75cts or 1.9%.
The spot-month NYMEX RBOB futures contract settled up 2.55cts Friday at
$2.0690 gallon but on the week fell 3.77cts or 1.8%
At the Enterprise supply hub this week, the spot price of normal butane
edged down 0.2% while isobutane slid 2.5% and natural gasoline fell 2.0%.
Trade in spot propane was moderate at the Enterprise and Conway supply hubs
Friday with deal-volume at 260,000 bbl and 85,000 bbl, respectively, but light
activity was seen at the LST hub as only 20,000 bbl was transacted.
At Mont Belvieu, LST spot propane traded midafternoon at 90.5cts gallon, up
1.0cts, while Enterprise spot propane was 2.375cts higher in a deal done
late-session at 91.0cts gallon.
Enterprise spot propane was valued late Friday at 54.2% of nearby WTI
futures, down from 54.9% at the same time last week.
Conway spot propane traded at 71.0cts gallon, up 0.75cts on the session and
1.5cts or 2.2% higher on the week.
Conway spot propane ended the trade session at a 20.0cts discount to
Enterprise spot propane, down from 23.25cts at the same time last week.
The Energy Information Administration Wednesday reported U.S.
propane/propylene inventories increased about 1.7 million bbl in the
week-ended July 13 to 65.3 million bbl. Domestic propane/propylene stocks were
down about 500,000 bbl or 0.7% versus the same time last year.
EIA data showed U.S. propane/propylene exports at 762,000 bpd in the
week-ended July 13, down from 796,000 bpd in the week prior. Four-week average
exports were at 723,000 bpd, up from 649,000 bpd in the same period last year.
Agency data showed implied demand for propane/propylene in the week at 1.029
million bpd which compared with 923,000 bpd in the week prior and 701,000 bpd
in the same week last year. Four-week average product supplied was at 901,000
bpd, up from 886,000 bpd in the same period last year.
Refiner and blender net production of propane/propylene was at 1.944 million
bpd in the week-ended July 13, up from 1.940 million bpd in the week prior and
1.842 million bpd in the same week last year.
In other U.S. NGLs spot markets Friday, Mt. Belvieu non-LST normal butane
advanced 3.75cts Friday at 118.0cts gallon while Conway normal butane slid
3.0cts at 77.0cts gallon, a 3-1/2 week low.
Non-LST isobutane was seen at 115.0cts gallon, up 0.5cts on the trade
session, and Conway isobutane was valued 1.0cts higher at 95.5cts gallon but
fell 5.5cts or 5.4% on the week.
Mt. Belvieu non-LST natural gasoline finished 1.875cts higher at 148.625cts
gallon while Conway natural gasoline traded at 125.5cts gallon, up 0.25cts on
Mt. Belvieu e/p mix was gauged at 29.25cts gallon, down 1.25cts, and Conway
e/p mix was seen 1.0cts lower at 8.0cts gallon.
Gulf Coast purity ethane traded late Friday at 33.0cts gallon, 1.0cts lower
on the session and on the week down 3.25cts or 9.0%. "It's likely that Exxon's
Baytown cracker is having difficulty starting up," said a market source.
In related markets, NYMEX August natural gas futures contract settled 1.2cts
lower Friday at $2.757 MMBtu and on the week edged down 0.5cts or 0.2%.
EIA midmorning Thursday reported natural gas held in U.S. storage increased
a less-than-expected 46 Bcf in the week-ended July 13 to 2,249 Bcf. Domestic
stocks of working gas were down 710 Bcf or 24.0% from the same week in 2017 and
535 Bcf or 19.2% below the five-year average of 2,784 Bcf.
The 46 Bcf injection in the week-ended July 13 compares with a 31 Bcf stock
build in the same week last year and a five-year average increase of 61 Bcf.
Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com.
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