Mt. Belvieu and Conway propane prices strengthened along with energy futures on Monday. Brent crude rose 0.8% higher and WTI gained 1.0% with a halt to Libyan oil exports out of 3 ports and some strength in US shares, despite losses in European equities. Natural gas futures also strengthened yesterday, gaining 6.4% with a stronger degree day forecast and a tighter US market balance expectation for this week. Mt. Belvieu TET prices rose 4.4% (3.75 cents) to 88.25c/g, widening their newly-regained premium over Conway, where prices rose 2.8% (2.25 cents) to 84.00c/g.
Crude futures prices opened higher but were off their highs and trading flat to lower as of this writing with Brent steady while WTI had shed 0.5%. Natural gas futures were seeing relatively modest gains of 0.9%. Propane prices were easing back today. Mt. Belvieu TET prices were down 1.0% (87 points) this morning at 87.38c/g, with non-TET at 88.31c/g. Conway prices had lost 1.2% (one cent) to hit 83.00c/g, keeping their discount to Mt. Belvieu at over four cents. In the news, OPIS reports that ATCO Energy Solutions Ltd plans to add four NGL storage caverns outside of Edmonton, aimed at doubling its existing storage capacity of 400,000 cubic meters. The company plans to add four 100,000 cubic meter caverns to store propane, butane, and condensate, with expected service in 2Q2024.
