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.
NGL demand was down this week as the Houston Ship Channel reopened and traders were no longer scrambling for extra volumes to meet end-of-month fulfillments.
The switch to summer-grade gasoline had a positive impact on heavy NGL prices despite flat WTI crude prices.
It is becoming clear that 2015 will be a “lost year” for crude oil, natural gas and NGL prices, but the hope is that it will be a minor blip.
West Texas Intermediate crude prices took another downturn the week of March 11 as storage at the Cushing, Okla., hub is quickly filling up.
The arrival of spring temperatures is causing natural gas and NGL prices to fall as heating and blending demand decrease and uncertainty remains over crude prices.
West Texas Intermediate crude oil prices experienced another uptick the first week of March.