The E-P mix continues to struggle at Conway as rejection levels are increasing at a rapid pace in the Midcontinent. Thus there has been very low volatility at the hub and the price was the lowest at the hub this year
In return for Iran limiting its nuclear program, the interim agreement provides for the release of $4.2 billion in frozen oil assets and will let Iran continue exporting oil at current levels, rather than forcing continued reductions by buyers, as would be required under current law, according to a White House statement.
Prices erased an earlier loss after the Energy Information Administration said stockpiles grew 375,000 barrels (bbl.) in the week ended November 15, below the 1 million-barrel increase forecast by 11 analysts surveyed by Bloomberg.
The U.S. government shutdown hasn’t had much of an impact on commodity prices thus far, although the industry will soon be forced to base some of its market movements on analyst forecasts and outlooks other than hard data from the government.
Commodity prices took a downturn this past week, which had the added effect of improving the majority of frac spread margins for natural gas liquids (NGL). For the most part, light NGLs were outperformed by their heavy counterparts.
NGL prices took a sharp downturn this week at both Mont Belvieu and Conway, following the drop in WTI crude prices as fears over a U.S. attack against Syria lessened. This followed last week’s strong growth.
The start of the second-half of the fiscal year has seen NGL prices improve with much of the credit being given to propane. However, one aspect of this growth that has largely been ignored has been that of natural gasoline (C5+).
Following the unofficial end of summer with the Labor Day holiday, the NGLmarkets seemed to return to their usual order as Mont Belvieu prices were greater than their Conway counterparts across the board for the first time in nearly three months.
Producers might not be ecstatic about natural gas liquids (NGL) prices at the moment, but their customers are having a better go of it as the lower prices have been a boon to the petrochemical and manufacturing industries.