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Benchmark propane prices fell sharply yesterday, extending (and accelerating) their sell-off to a third consecutive session. Mt. Belvieu TET propane prices tumbled 5.2% (2.75 cents) lower to 50.63c/g and Conway spot prices dropped 4.8% (2.50 cents) to 49.50c/g. The losses came amid a 4.4% drop in NYMEX natural gas but despite only small losses in crude futures. Brent crude edged down 0.3% and WTI shed just 0.2% yesterday, with news of stronger Libyan oil production and fears over the coronavirus likely weighing along with strength in the US dollar index.
Crude futures mixed a little changed this morning, with WTI just south of the unchanged mark, while Brent had added 0.3%. Strength in European shares was supportive, while trade in US shares was mixed. Further, if modest, strength in the dollar was unsupportive for crude, whereas talk that US legislators might soon resume talks on a coronavirus aid package was supportive. Natural gas futures were also trading in the black today, up 2.1% as of this writing. Propane prices were falling for a fourth session. Mt. Belvieu TET prices were down 1.1% (56 points) at 50.06c/g (non-TET nearby at 50.19c/g) and Conway spots had slipped 0.5% (25 points) lower to 49.25c/g.
