The hypothetical NGL barrel at Mont Belvieu, Texas, continued its 10-week swoon to a 17-month low in the past week. Since reaching its high for the year of $41.65 at the start of October, the barrel’s price has fallen 39%.
That said, it was a pretty good week. With the exception of butanes, margins expanded at the Mont Belvieu and Conway, Kan., hubs as natural gas prices fled the zone of $4+ per million British thermal units (MMBtu) to the territory of $3+/MMBtu.
Warmer-than-average weather has tempered gas prices but that could change. The polar vortex, a whirling cone of stratospheric low pressure over the poles, strengthens during the winter because of the sharper contrast in temperature between the poles and mid-latitudes.