Enterprise Spot Propane, Gulf Coast Butanes Rally Friday
ORANGE BEACH, Ala. (DTN) -- U.S. spot propane prices finished sharply higher
at the major supply hubs Friday with Enterprise barrels up 11.25cts or 12.5%
and Gulf Coast butanes also posted strong gains, with support from advancing
New York mercantile Exchange oil futures.
"I haven't seen any news today that can explain the run-up in Enterprise
propane," said a broker. "Some people are saying a polar vortex now hitting the
UK is the reason, but it doesn't seem like that would account for what we saw
today," he said.
At settlement, NYMEX April West Texas Intermediate crude oil futures were up
78cts at $63.55 bbl, and on the week advanced $2.18 or 3.5% to finish at a more
than two-week high.
The nearby NYMEX RBOB futures contract settled 4.28cts higher at $1.8085
gallon and on the week gained 5.76cts or 3.3%.
In the week ended today, LST spot propane rose 12.0cts or 15.0% while
Enterprise spot propane advanced 27.25cts or 32.5%.
At the Enterprise supply hub, normal butane advanced 27.9% in the week while
isobutane was up 23.2% and natural gasoline rose 3.0%.
Trade in spot propane was moderate to active at major supply hubs Friday
with 345,000 bbl transacted at the Enterprise hub while deal-volume at the LST,
Targa and Conway hubs was at 145,000 bbl, 40,000 bbl and 100,000 bbl,
At Mont Belvieu, LST spot propane traded Friday afternoon at 92.25cts
gallon, up 4.0cts and at a 4-1/2 week high, and Enterprise spot propane jumped
11.25cts to finish at 101.0cts gallon, a 40-1/2 month high.
Enterprise spot propane ended the day valued at 66.8% of nearby WTI futures,
up from 57.3% at the same time last week.
Targa spot propane traded 8.25cts higher at 95.0cts gallon.
Conway spot propane was done at 70.5cts gallon, up 3.0cts on the day and
0.25cts higher in the week. "There's a big bottleneck for barrels being railed
from Canada to Conway," said a market source. "It's hard to get cars lined up;
they're 2-3 weeks behind," he said.
Hattiesburg spot propane did not trade Friday but sources pegged it late day
at 85.75cts gallon. Said a market source late session, "There's an offer on ICE
at 90.0cts but I've been trying to sell either wets or anys at 86.0cts gallon
all day and there's been no interest."
The Energy Information Administration Thursday reported U.S.
propane/propylene inventories dropped about 2.5 million bbl in the
week-ended Feb. 16 to 43.1 million bbl, which was down 6.8 million bbl or 13.5%
versus the same time in 2017.
Agency data showed U.S. propane/propylene exports at 779,000 bpd, down from
1.065 million bpd in the week prior. Four-week average exports were at 809,000
bpd, down from 1.123 million bpd in the same period in 2017.
Implied domestic demand for propane/propylene was at 1.651 million bpd,
which compared with 1.540 million bpd in the week prior and 1.218 bpd in the
same week last year, according to EIA.
Refiner and blender net production of propane/propylene was at 1.876 million
bpd, down from 1.891 million bpd in the week prior but up from 1.637 million
bpd in the same week last year.
In other U.S. NGLs spot markets, Mt. Belvieu non-LST normal butane advanced
7.25cts Friday to finish at a more than one-year high at 120.5cts gallon, and
Conway normal butane was up 0.75cts at 85.0cts gallon.
Mt. Belvieu non-LST isobutane rallied 6.0cts at 123.0cts gallon, also a more
than one-year high, and Conway isobutane slid 0.75cts at 97.25cts gallon.
Enterprise natural gasoline advanced 2.25cts at 138.5cts gallon, a 2-1/2
week high, as its discount to LST natural gasoline widened by 0.125cts to
1.125cts. Conway natural gasoline also finished at a 2-1/2 week high, with its
value up 3.5cts to 136.5cts gallon.
Mt. Belvieu e/p mix was assessed 0.5cts higher at 23.125cts gallon while
Conway e/p mix slid 0.75cts at 14.0cts gallon.
Gulf Coast ethane traded flat at 23.875cts gallon and was unchanged on the
In related markets, NYMEX March natural gas futures settled down 0.9cts
Friday at $2.625 MMBtu, but on the week rose 6.7cts or 2.6%.
EIA Thursday reported natural gas held in U.S. storage dropped about 124 Bcf
in the week-ended Feb. 16 to 1,760 Bcf, a near 34-month low. Working gas was
down 609 Bcf or 25.7% from the same time in 2017 and 412 Bcf or 19.0% below the
five-year average of 2,172 Bcf.
Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com. (c) 2018
DTN. All rights reserved