Colder temperatures and snowfall drove heating demand and improved gas prices, but NGL prices dropped through mid-November.
Crude oil prices continue to fall as geopolitical issues impact both the West Texas Intermediate (WTI) and Brent markets. The WTI price fell below $75 per barrel (/bbl), nearing a level that could halt some U.S. unconventional production.
Saudi Arabia’s mandate to continue crude production even as prices fall below $80 per barrel could have long-term impacts on U.S. markets.
NGL prices continued to suffer in the final week of October, while West Texas Intermediate crude prices held at about $80 per barrel.
Though natural gas and NGL prices have been decoupling from oil prices for the past several years, the sudden downturn in crude prices have pulled the entire hydrocarbon sector down with it.
NGL prices took a large downturn as they followed the downward trajectory of West Texas Intermediate (WTI) crude prices, which fell to their lowest levels in several years just above $80 per barrel (/bbl).
While the rest of the NGL barrel (bbl) has experienced price depreciations related to the shoulder season and decreased values for West Texas Intermediate (WTI) crude oil, propane prices improved the first week of October based on seasonal and LPG export demand.
NGL prices took a downturn as September came to a close.
Despite limited demand and large supply levels, NGL prices have been holding firm.
Ethane frac spread margins will continue to struggle in the short-term, but the increased likelihood of static gas prices should help them turn a corner.
NGL prices improved the week of Sept. 3 as several ethane crackers returned to service after undergoing unexpected turnarounds.
Despite price increases this week, ethane prices are expected to struggle until winter at the earliest.