Our LPG/NGLs service is overseen by Robert Campbell and covers the rapidly expanding and evolving global markets for LPG and other natural gas liquids. With in-depth knowledge of these traded markets, our publications provide comprehensive coverage and deliver insights to keep you ahead of developments in this complex arena.
LPG markets are anticipating the bottoming out of US stockdraws, but with uncomfortably low inventories and positioning heavily skewed towards the short side of the market, the risk of further volatility will persist. Not only are many traders active on the short side, but many consumers are tryi..
The global LPG selloff that was widely expected for the spring got underway early last month. Demand fundamentals look mostly fine, especially with propane and butane falling in price to entice petrochemical producers to switch away from cracking naphtha, but the market looks set to struggle. Bec..
A burst of cold weather in the US and Asia has helped perk up propane prices since mid-December, and with Asian inventories being run down, buying to replenish stocks is likely to emerge in the coming weeks. Trading activity has been limited to opportunistic buying of butane as petrochemical plan..
Propane and butane have diverged as the market continues to anticipate good heating demand this winter, but petrochemical demand in China for butane has slowed significantly. China’s crackdown on air pollution has also worsened domestic gasoline blending margins as refiners have struggled to obta..
Atlantic basin LPG demand has been rationalised to the point that even without cold weather, Asian buyers have recovered a lot of pricing power, pushing back on purchases for the moment, temporarily tipping the market into contango. Asian demand growth has been met this year entirely through US L..
Mont Belvieu propane prices smashed through the heady level of 70% of WTI last month as Hurricane Harvey rattled a market already stretched thin by low inventories. The storm put a halt to USGC exports for a week, but shipments subsequently rebounded sharply, with weekly EIA data showing exports..
Hurricane Harvey appears to have done little major damage to key US Gulf Coast production and export infrastructure, but the delays to US exports caused by the storm have heightened supply concerns in international markets. If US propane exports average 1 mb/d in Q4 17, which would be just 60 tho..
Propane exports have regained strength in July, raising the possibility of an even tighter propane market than expected through H2 17. Exports rose m/m by 0.17 mb/d to 0.8 mb/d last month, and could be bolstered further throughout Q3 17 and into Q4 17 if seasonal buying increases. Pushing ahead i..
Waterborne LPG markets could be in for a rough patch in Q3 17 following massive Chinese imports in May and June, which helped allay market fears that a structural shift was underway following two months of very weak demand. Chinese buyers likely overbought in May and June and imports are likely t..
Waterborne LPG markets are hitting choppy seas, but US propane exports have only slowed modestly despite tight domestic stocks. US propane supplies and inventories are still too low to support recent export levels of around 0.9 mb/d all the way through summer. However, global LPG demand growth ha..
LPG markets have turned a corner following a slowdown in demand and with US production returning to growth. Mont Belvieu propane has offered the best returns amongst the main refined products over the past year, outperforming both gasoline and diesel. Propane’s strength has been the result of fal..
LPG forward curves have weakened as demand slows from the peak winter months, and most markets have moved into seasonal contango. We are still bullish on global LPG, however, because the dynamics of US production haven’t changed: supply growth will be limited through Q3 17. Incremental propane su..
The underlying data for the balances is now available to download as a part of this service. Propane prices have weakened considerably from their multi-year highs over the past couple of weeks, but they still remain at around 50% of crude in the US, which is not a bad place to be after another di..
US propane curves are starting to signal a serious lack of production, and the market will not be able to drill itself out of this shortfall in the near term. After grappling for several years with oversupply, US propane markets now need to adjust to tepid supply growth and strong export demand...
Global LPG markets have rallied on colder weather in Europe and Asia, robust petrochemical demand, and falling gas plant supplies in the US. Propane swap curves have moved into steeper backwardation, but the strength is no longer limited to propane, as US butane prices spiked in late-December, du..