The five-day average price of Mont Belvieu, Texas, ethane tumbled 35% to a record low last week, barely staying in double-digits at just a touch above 10 cents per gallon (gal).

Has the price bottomed out? The trend is not encouraging. The final two days of the tracking period saw ethane decline to 9.4 cents/gal and then to 8.4 cents/gal. Construction delays have kept long-promised crackers from going online and storage on the Gulf Coast tight, so with demand low, rejection may well be on the rise.

Hovering over the markets is wariness toward the weakening global economy. On July 31, the Federal Reserve cut interest rates for the first time since 2008 in an effort to inoculate the economy against a slowdown.

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