Frac Spread: Gloom Persists But Price Pickup Could Be Near
Butane’s free-fall drops it to the lowest point since Hart Energy began tracking NGL prices.
(Source: Shutterstock, Hart Energy)
How weak are NGL prices? Start with butane. Last week’s Mont Belvieu, Texas, price was the lowest in the 13 years that Hart Energy has tracked NGL. The margin shrunk 28% from the previous week to 17 cents per gallon (gal).
That’s the most dramatic collapse, but there is plenty of gloom to go around Mont Belvieu:
Ethane at its lowest point since March 2016 (last week’s margin was 0.22 cent/gal);
Propane at its lowest point since August 2016; and
The hypothetical barrel at its lowest point since April 2016.