The information provided in this market update is general market commentary provided solely for educational and informational purposes. The information was obtained from sources believed to be reliable, but we do not guarantee its accuracy. No statement within the update should be construed as a recommendation, solicitation or offer to buy or sell any futures or options on futures or to otherwise provide investment advice. Any use of the information provided in this update is at your own risk.
Propane prices fell for a fourth consecutive session on Friday, despite broad-based gains in energy futures. Mt. Belvieu TET propane prices slipped 0.1% (6 points) lower to 50.56c/g and Conway prices fell 1.0% (50 points) to 49.00c/g, widening their discount to Mt. Belvieu to 1.56 cents. Meanwhile, WTI futures climbed 1.0% higher and Brent strengthened 1.7% amid strength in European shares and a drop in the US oil rig count, despite more mixed trade in US shares and a stronger dollar. Natural gas futures also closed in the black, up 2.2% with a stronger two-week degree day outlook.
Crude futures were seeing further gains this morning, with WTI up 0.4% and Brent crude having gained 1.4%, following news that AstraZeneca's COVID-19 vaccine is 90% effective, and with stronger than expected Composite PMI data for Germany, France, and the UK - although the Markit index for the Eurozone as a whole fell short of expectations and showed a sharper than expected economic contraction this month, likely as the resurgence of the pandemic and restrictions put in place take a toll. Strength today also came amid geopolitical items from Libya and Yemen, as well as a continued drop in the value of the US dollar against a basket of currencies. Natural gas futures were up 1.0%. As for propane, we looked set to end the four-session losing streak. Mt. Belvieu TET prices were up 2.4% (1.19 cents) at 51.75c/g this morning (non-TET at 51.56c/g) and Conway spots had gained 1.3% (62 points) to reach 49.63c/g. In the news, the latest Commitment of Traders Report from the CFTC showed Mt. Belvieu TET propane swap speculators cut their net long position in the week ended November 17, as long positions fell by 941 to 8,465, while shorts fell by 346 to 4,337.
