Spot Propane Flat to Lower, Natural Gasoline Prices Climb
HOUSTON (DTN) --- Most spot liquefied petroleum gas prices were flat to
lower on Tuesday amid sliding crude and natural gas futures in trading on the
New York Mercantile Exchange. Prices for natural gasoline, which is used as a
denaturant in ethanol, bucked the trend, increasing on the session.
A tight short-term supply-demand balance for ethanol underpinned pricing
support for natural gasoline.
Crude futures declined on reports that the recent stress test of major
European Union banks may have understated potentially risky government debt,
prompting traders to yet again doubt the strength of the region's economy. The
news resurrected concerns over sovereign debt in the European Union, which
first came to a head in the spring and pressured equities values worldwide.
In reaction to the report, the euro fell to a three-week low against the
U.S. dollar, with a stronger dollar further pressuring crude futures values.
Meanwhile, RBOB and heating oil futures rebounded on news that Pemex's
230,000 bpd refinery near Monterrey, Mexico is down due to an explosion.
Also, natural gas futures dropped on forecasts for mild weather across the
U.S., and a lack of predicted hurricane activity in the Gulf of Mexico.
At settlement, October crude oil futures were 51cts lower at $74.09 bbl.
October RBOB futures gained 1.34cts at $1.9329 gal. October No.2 oil futures
inclined 1.7cts to $2.0743 gal. October natural gas futures declined 8.7cts at
$3.852 MMBtu.
In physical LPG trade, Mont Belvieu propane was pegged at 108.75cts, flat
with day-prior values. Conway propane slid 1cts to 105.5cts gal.
Normal butane at the Mt. Belvieu hub was also flat with Friday's assessment
at 138.75cts gal.
Mt. Belvieu natural gasoline gained 0.75cts at 175cts gal, while Conway
natural gasoline edged up 0.5cts to 159.5cts gal.
Edmonton propane dropped 1cts at 97cts gal while Hattiesburg shed 0.5cts at
105.25cts gal.
T.L. Hamilton, 1.832.767.2622, tl.hamilton@dtn.com, www.telventdtn.com. (c)
2010 Telvent DTN. All rights reserved.
