Mt. Belvieu and Conway propane prices strengthened for a third session on Monday, featuring a further widening of the reversed spread between the two benchmarks. Mt. Belvieu TET prices climbed 2.0% higher amid similar gains in crude futures, which extended their rally along with equities. Mt. Belvieu TET prices hit 88.13c/g after the 1.75-cent gain, but this paled in comparison to a 6.5% (5.75-cent) jump in Conway prices to 94.50c/g - putting the spread at 6.38 cents. The spread between the average Selkirk, NY rack price to Mt. Belvieu also continues to widen, up to 39.29 cents for this morning.
Crude futures were seeing small losses this morning, looking set to end or take a pause in the recent rally, with WTI down 0.3% and Brent just under the unchanged mark as of this writing. The losses came amid mixed trade in equities, despite a third session lower for the US dollar index. Mt. Belvieu and Conway propane prices were mixed this morning, with the spread blowing out even further. Mt. Belvieu TET prices were falling along with crude, down 0.9% (75 points) at 87.38c/g (non-TET at 85.50c/g), but Conway spot prices were up another 3.8% (3.63 cents) at 98.13c/g - implying a double-digit premium over Mt. Belvieu TET (10.75 cents). In the news, OPIS reports that Gulf Coast fog disrupted maritime traffic from Houston to New Orleans yesterday, with fog expected through tomorrow.
