On Friday, OPIS reported that Conway ‘Any Current Month’ ethane in E-P mix transacted at a low of 4.5 cents/gallon. The average level for the day was 7.25 cents/gallon. Here’s the OPIS quote “Outright e/p mix for May supply weakened to an all new historical low, not only on an average basis, but also setting the lowest low ever for the product".
Let’s contemplate 4.5 cents/gallon for a few minutes. That equates to $1.89 per barrel. That’s got to be some kind of multi-decade record low for any hydrocarbon. Converted to a natural gas equivalent it is $0.68/MMbtu. All of a sudden June Natgas at $2.28/MMbtu looks pretty good. The average daily E-P price of 7.25 cents/gallon just barely exceeds a buck in gas terms at $1.09/MMbtu.
For search purposes: Lyondellbasell.
Lyondell Basel is getting the ethane for practically free for its facilities.
ReplyDeleteThe whole plastics industry in the US has enormous price advantages over the rest of the world (except maybe Qatar).
Right now, things have never looked so good in the US compared to Europe, based on energy costs and raw materials.
DeleteThen throw in the recent elections and Europe is in a bit of trouble.