The crude oil prices, when compared over a two-week period, are about the same; specifically, $84/barrel for WTI and $86/barrel for Brent.
What’s interesting is that during the past two weeks crude oil prices initially drifted lower only to rally aggressively the past two days. Conversely physical PGP prices rallied these past two weeks only to fall back down to start this week. Crude and PGP are moving in opposite directions on a short-term basis. We attribute this temporary dip in crude pricing and jump up in PGP pricing to price fluctuations. We remain bullish crude oil prices…
Natural gas prices down 15% these past two weeks to a spot price of $5/mmbtu.
Prices are lower on..
Plastics Feedstocks (Naphtha, Ethane, and Propane)
Naphtha pricing (CIF Japan) is down slightly to $765/mt form $790/mt two weeks ago.
Ethane prices in Mont Belvieu, TX are stable around 42 cents per gallon (cpg) and propane prices are stable around 140 cpg.
As discussed under the crude oil section, physical PGP prices rallied from 62cpp two weeks ago to trade at 70.5cpp on Nov 4. Since Nov 4 prices have retreated to 63cpp, which is almost unchanged from two weeks ago.
In our last report from October we wrote, “BlueClover does expect physical PGP pricing to slide into the mid 50s cpp range next month”.
We do expect physical PGP to break the 60cpp level this month mainly as a result of continued sluggish derivative demand. BlueClover expects the volatility for PGP to return in the 1st quarter of 2022…