The hypothetical NGL barrel jumped to its highest level in more than five months at both the Mont Belvieu, Texas, and Conway, Kan., hubs in the past week as margins expanded in double figures for all components but one.
Ethane at Mont Belvieu pushed toward 26 cents per gallon (gal) as it reached its highest level since the first week of the year. At Conway, the average price over the last week surpassed 22 cents/gal for the first time since early February.
U.S. crude oil inventories have declined by almost 10% since the start of the second quarter, which is the steepest drop in that time frame in the past 20 years, En*Vantage said in a recent report. The Cushing, Okla., hub’s stocks are more than 14% below its level at the same point in 2016 and En*Vantage expects the U.S. crude inventory to slide by another 14 million barrels over the next four weeks.