Gulf Coast Spot NGLs Extend DN Friday, Conway Ends Mixed

    

   HOUSTON (DTN) -- Gulf Coast spot NGLs prices finished lower Friday with the 
exception of normal butane which ended flat, registering weekly losses that 
ranged from 3.8% to 11.9% despite support from advancing New York Mercantile 
Exchange oil futures.

   Spot-month NYMEX WTI crude oil futures settled at $59.04 bbl, down 94cts on 
the trade session but on the week up 52cts or 0.9%. On Thursday, the May WTI 
contract settled at a $59.98 bbl near 4-1/2 month high.

   Nearby April NYMEX RBOB futures settled at a more than five-month high 
Friday at $1.9259 gallon, up 0.56cts on the trade session and up 6.82cts or 
3.7% on the week. 

   Nearby ICE Brent futures settled 83cts lower at $67.03 bbl as the Brent-WTI 
spread ended at a 6-1/2 week low $7.99 bbl, which was down from $8.55 bbl at 
the same time last week and $9.67 bbl two weeks prior.

   In the week that ended today, the spot price of LST propane dropped 4.75cts 
or 6.9% while Enterprise spot propane fell 4.5cts or 6.6%.

   At the Enterprise supply hub this week, the spot price of normal butane 
moved 3.8% lower and isobutane slid 8.7% while natural gasoline rose 5.0%.

   The Energy Information Administration Wednesday reported U.S. 
propane/propylene stocks increased about 1.0 million bbl in the week-ended 
March 15 to 51.1 million bbl, with inventories in Gulf Coast PADD 1 up 1.2 
million bbl while Midwest PADD 2 supplies dropped 700,000 bbl to 8.6 million 
bbl.

   At 51.1 million bbl, domestic supplies of propane/propylene are up about 
14.4 million bbl or 39.2% from the same time in 2018 and approximately 14% 
above the five-year average for the same time of year.

   Versus the same time in 2018, Gulf Coast PADD 3 propane/propylene supplies 
were up 15.0 million bbl or 67.0% while Midwest PADD 2 stocks were down 1.3 
million bbl or 13.1%.

   EIA data showed U.S. propane/propylene exports at 780,000 bpd in the week 
ended March 15, down from 1.039 million bpd in the week prior. Four-week 
average exports were at 839,000 bpd compared with 870,000 bpd in the same 
period in 2018.

   Implied demand for propane/propylene was at 1.253 million bpd in the week, 
which compared with 1.299 million bpd in the week prior and 1.242 million bpd 
in the same week last year.

   EIA reported refiner and blender net production of propane/propylene at 
1.981 million bpd in the week-ended March 15, up 5,000 bpd from the week prior 
and 141,000 bpd or 7.6% above the year-ago level.

   Traded in spot propane was light to moderate on the Gulf Coast but thin in 
the Midcontinent Friday with deal volume at the LST, Enterprise, and Conway 
hubs at 105,000 bbl, 100,000 bbl, and 15,000 bbl, respectively.

   At Mont Belvieu, LST spot propane finished at 63.75cts gallon, down 0.875cts 
from the day prior, while Enterprise spot propane traded 0.5cts lower at 
63.5cts gallon.

   Enterprise spot propane was valued late session at 45.2% of nearby WTI crude 
futures, down from 48.8% at the same time last week.

   Conway spot propane traded early session at 56.25cts gallon, down 1.875cts, 
and slid 4.75cts or 7.8% during the week.

   Hattiesburg spot propane did not trade on ICE Friday but was assessed late 
session at 66.5cts gallon, down 2.0cts from the day prior.

   In other NGLs spot markets, Mt. Belvieu non-LST normal butane traded late 
Friday at 75.0cts gallon, unchanged from a 13-week low finish the day prior, 
while Conway normal butane was done at 66.0cts gallon, up 0.5cts from a 
five-week low.

   Non-LST isobutane dropped 2.5cts at 81.0cts gallon, a 1-1/2 week low, and 
Conway isobutane slid 1.0cts to a 5-1/2 week low 75.0cts gallon.

   Mt. Belvieu non-LST natural gasoline traded 1.0cts lower at 131.25cts gallon 
as its premium to LST natural gasoline increased from 2.0cts gallon to 4.0cts 
gallon. On Thursday, non-LST natural gasoline finished at a more than 4-1/2 
month high 132.25cts gallon. 

   Conway natural gasoline, which finished the trade session Monday at a 4-1/2 
month high, changed hands Friday at 117.75cts gallon, up 0.75cts from the day 
prior.

   Mt. Belvieu e/p mix was assessed 0.25cts lower at 20.25cts gallon, and 
Conway e/p mix was valued 0.125cts higher at 11.875cts gallon.

   Gulf Coast purity ethane slid 0.5cts Friday to more than one-year low 
24.125cts gallon as it slid 3.25cts or 11.9% during the week. 

   In related markets, spot-month NYMEX natural gas futures settled down 6.8cts 
at a four-week low $2.753 MMBtu on Friday after sliding 4.2cts or 1.5% in the 
week.  

   The EIA Thursday reported natural gas held in U.S. storage decreased an 
about-as-expected 43 Bcf in the week-ended March 15 to 1.143 Tcf.

   EIA revised U.S. natural gas stocks reported for March 8 from 1,186 Bcf to 
1,190 Bcf to reflect an upward adjustment to supplies in the South Central 
Region.

   The 43 Bcf draw on working gas in the week ending March 15 compared to an 87 
Bcf decrease in the same week in 2018 and a five-year average decline of 56 Bcf.

   At 1.143 Tcf, U.S. natural gas supplies are down 315 Bcf or 21.6% from the 
same time in 2018 and 556 Bcf or 32.7% below the five-year average of 1.854 Tcf.

   As of March 15, natural gas stocks in all major regions of the country were 
at deficits compared to five-year average levels, according to the EIA. The 
deficit versus the five-year average in the East Region was at 64 Bcf or 20.6%, 
in the Midwest Region at 106 Bcf or at 28.3%, in the South Central Region at 
228 Bcf or 32.6%, and in the Mountain Region at 53 Bcf or 46.1%, and in the 
Pacific Region at 104 Bcf or 52.0%. 

   Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com,

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