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.
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