Mt. Belvieu TET propane prices rallied 3.6% (3.13 cents) yesterday, hitting 90.75c/g, despite unsupportive weekly EIA stock data and mixed trade in crude futures. The north-south spread widened further, even as EIA reported a sizeable Midwestern stock draw for the week ended January 22. Conway prices fell back 1.2% (one cent) to 81.63c/g - a discount of over 9 cents to Mt. Belvieu TET. Meanwhile, WTI futures added 0.5% while Brent crude futures slipped 0.2% lower. Natural gas futures saw similarly-sized gains to Mt. Belvieu propane, up 3.9% with a stronger degree day forecast and tighter picture of next week's US market balance.
Crude futures were seeing modest gains this morning amid weakness in the US dollar index and strength in US shares. As of this writing, WTI Futures were up 0.6% and Brent crude futures had gained 0.7%. Natural gas futures, meanwhile, were down 1.7% ahead of the weekly EIA storage report. Propane prices were strengthening along with crude today, featuring a further widening of the north-south spread. Mt. Belvieu TET prices gained 1.7% (1.56 cents) this morning, hitting 92.31c/g, and non-TET prices climbed even further, to 93.13c/g. Meanwhile, Conway prices edged up just 0.5% (37 points) to 82.00c/g, implying a discount of over ten cents to the Texas hub. In the news, Argus reports that Chinese trading sources indicate that, while petrochemical sector demand for LPG is expected to remain robust, tightening coronavirus measures are expected to curb demand from businesses, and the end of a harsh winter by February and March are likely to curb residential LPG demand.
