Locator: 48756B.
For the archives: President-elect Trump to meet with President Joe Biden later today
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Back to the Bakken
WTI: $68.64.
Thursday, November 14, 2024: 19 for the month; 79 for the quarter, 593 for the year
- 40636, conf, CLR, Vandeberg 4-35H,
- 40464, conf, Enerplus, Devils Canyon 147-97-20-2H-WLL,
- 40193, conf, Hess, EN-Cvancara A-155-93-3231H-11,
- None.
RBN Energy: crazy pricing for Mont Belvieu propane obliterates hedges.
Exactly the same product. Exactly the same day. In storage very nearby. Yet their prices diverged by 17 cents per gallon — a spread equivalent to $7 per barrel. That’s a very substantial difference for prices that typically are almost indistinguishable, differing by an average of only 0.3% in recent years. The disparity roiled the financial underpinnings of exports for over a month and busted numerous inventory hedges. Is this some rare commodity? Hardly. It’s Mont Belvieu propane, the Rock of Gibraltar benchmark propane price in the U.S., and to a great extent around the world. But during October there was a crack in that rock a mile wide.
At the end of September, the price of TET propane, which is the Energy Transfer marker commonly used for financially hedging most propane exports and as an index for some domestic contracts, dropped sharply compared to the price of Non-TET propane at Enterprise Products Partners literally next door in Mont Belvieu. The spread stayed wide for the entire month of October. Non-TET is the price reference for more than two-thirds of physical propane exports and serves as the benchmark index for domestic supply.
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