Propane prices fell on Wednesday, with Conway prices falling back to levels not seen since early last month - wiping out the price spike they saw over the past month. Conway prices dropped 3.88 cents to 87.88c/g, and are now nearly 9 cents below Mt. Belvieu TET, which lost 1.8% (1.81 cents) yesterday, hitting a 96.44c/g midpoint. Weakness in propane looked independent, and it was hard to pin down motivation as weekly EIA inventory data were quite neutral. Natural gas futures edged down 0.8%, but Brent crude rallied 2.2% and WTI futures jumped 2.6% higher.
Crude futures were rallying further this morning amid indications that Saudi Arabia could keep to its 1mb/d voluntary oil production cuts for an extra month into April, and with Russia telling the OPEC+ meeting that the release of supply needs to be very careful. As of this writing, WTI futures had rallied 2.4% and Brent crude futures had gained 1.9%. Natural gas futures were moving in the opposite direction, down 1.8%. Propane prices were rebounding some after yesterday's drop, with Mt. Belvieu TET up 1.5% (1.44 cents) at 97.88c/g (non-TET close by at 97.69c/g) and Conway spots up 0.6% (50 points) at 88.38c/g. The spread between the two benchmark prices looked to be widening further. Well-above-normal temperatures are the expectation for the Midwest over the next 10 days, per the latest near-term ECMWF outlooks.
