Energy commodity prices dipped this week as consumer demand remains down during the shoulder season. Natural gas prices experienced very large price decreases with NGL prices falling at a slower rate at both hubs the first week of May.
The improved prices for natural gas liquids (NGL) experienced throughout much of early 2013 provided producers and operators with an incentive to increase production, which has started to overwhelm the market once again.
The winter of 2012-2013 arrived late, but had a long-lasting effect as high heating demand has helped support propane and natural gas prices and drive storage levels below the five-year average for the first time in several years.
The natural gas pipeline trade group Interstate Natural Gas Association of America issued a report finding that, although the FERC review of permit applications is effective, other agencies can cause delays in the process.
Light natural gas liquids (NGL) prices continued to gain strength as the spring approaches with supply-and-demand levels reaching equilibrium thanks to heating demand, increased fractionation and liquefied petroleum gas (LPG) export capacity.
A downturn in crude oil prices the week of February 13, which caused the price to drop below $95 per barrel (/bbl.), saw heavy natural gas liquids (NGL) prices to fall in the latter stages of the week.