Gulf Coast Spot Propane, Butane Up Midday with Oil Futures
2/23 12:00 PM
Gulf Coast Spot Propane, Butane Up Midday with Oil Futures HOUSTON (DTN) -- Gulf Coast spot propane and butane prices advanced in early trade Friday with the former at more than one-month highs and the latter at fresh more than one-year highs and other NGLs moved shallowly mixed while New York Mercantile Exchange oil futures rallied. Near midday, NYMEX April West Texas Intermediate crude oil futures were up 85cts at $63.62 bbl and the nearby NYMEX RBOB futures contract was up 3.53cts at $1.8010 gallon, with each at 2-1/2 week highs. Spot propane traded moderately across the key supply hubs early Friday with 200,000 bbl transacted at the Enterprise hub near midday while deal-volume at the LST, Targa, and Conway hubs was at 110,000 bbl, 30,000 bbl and 70,000 bbl, respectively. "There was a lot of buying interest in the first hour of the trading session, but things have slowed considerably since then though prices continued to push higher on the Gulf Coast," said a broker near midday. At Mont Belvieu, LST spot propane traded late morning at 92.0cts gallon, up 3.75cts and at a 4-1/2 week high. Enterprise spot propane advanced 5.0cts early session to hit a more than seven-week high at 94.75cts gallon. Enterprise spot propane was valued near midday Friday at 62.8% of nearby WTI futures, up from 59.2% at the same time last week. Targa spot propane traded early session at 92.0cts gallon, up 5.25cts. Conway spot propane was done 1.875cts higher at 69.375cts gallon as its Enterprise spot propane widened to 25.375cts gallon. In other U.S. NGLs spot markets, Mt. Belvieu non-LST normal butane traded early Friday at 120.0cts gallon, up 6.75cts on the day and 25.75cts so far this week. Conway normal butane traded 0.5cts lower at 83.75cts gallon, at a 36.25cts discount to non-LST normal butane which was almost double the 18.75cts multi-year high differential between the two last year on Feb. 21. Mt. Belvieu non-LST isobutane advanced 7.25cts at 124.25cts gallon while Conway isobutane slid 0.25cts at 97.5cts gallon. Mt. Belvieu non-LST natural gasoline edged 0.25cts lower at 136.0cts gallon as its discount to LST natural gasoline widened by 0.125cts to 1.125cts, and Conway natural gasoline advanced 1.5cts at 134.5cts gallon, a 2-1/2 week high. Mt. Belvieu e/p mix was heard flat at 22.625cts gallon while Conway e/p mix was valued 0.75cts lower at 14.0cts gallon. Gulf Coast purity ethane was down 0.25cts early session at 23.625cts gallon. In related markets, NYMEX March natural gas futures were down 4.4cts in midday trade at $2.590 MMBtu. Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.