NGL prices went through their roughest patch since 2008, but questions still remain over whether the market’s recovery has begun or not.
Crude prices remained flat at $60/bbl, while NGL prices continue to sag. This decoupling is expected to return as the norm going forward.
Challenges in the propane market continue to present themselves as prices stay at 13-year low.
Despite improved crude and gas prices, NGL prices continue to drop as an oversupplied market is weighing heavily on profits.
Frac spread margins improved even with flat NGL prices as decreased natural gas prices improved economics at both hubs.
Despite increased export demand, large inventory builds are pushing propane prices to their lowest levels in 13 years.
As natural gas prices hit their highest levels in months, NGL prices and margins have failed to keep pace.
Crude and gas fundamentals are improving along with prices, but the NGL market remains flat with severe supply overhangs.
Rail capacity is being overwhelmed by propane shipments, which could cause the product to become competitive with resurgent gas prices.
Despite crude prices posting strong gains, NGL prices remained stagnant as supplies remain high.
NGL prices experienced a rebound as WTI crude prices moved up on the back of several fundamental changes.
Despite WTI crude hitting its high price for 2015, NGL prices were largely flat as storage overhangs continue to negatively impact the industry.