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.
The tightness in global LPG markets has been laid bare by price action this past month. LPG prices have outperformed crude as the y/y deficit in US Gulf Coast propane stocks has ballooned to 8.5 mb. Pipeline bottlenecks continue to bedevil shippers in the US, a situation that we think will persis..
The US natural gas liquids system is constrained, making the production and distribution of NGLs harder as stocks build in unhelpful places even as demand from export markets continues to pull supply out of the US Gulf Coast. US propane stocks rose by 5 mb m/m in July, but just 0.9 mb of this was..
Falling Middle Eastern exports, uncertainty over US sanctions on Iran and the threat of Chinese tariffs on US LPG has kept the Asian LPG market unusually strong over the last month as importers sought to replenish stocks early rather than await further clarification. The recent OPEC+ agreement to..
LPG prices have been unseasonably strong over the last month, posting gains against crude and naphtha as the whole energy complex has rallied amid fears that the resumption of US sanctions on importers of Iranian oil will trigger a shortfall in the global oil market. While steady US exports have..
Propane markets are entering the stockbuild season with US propane swaps more steeply backwardated than they were last year, when the market was far more preoccupied with the tightening supply situation. But it is far from clear that shorting this market will yield a quick win. Backwardated swaps..
The emerging trade war between the US and China has the potential to shatter the spring reverie. China is threatening to impose an additional 25% import duty on US-origin propane and polyethylene, among other products, in a retort to the Trump administration’s decision to impose heavy duties on $..
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..