Frac Spread: Saudi Attack Raises Prices, Concerns About NGL

With oilfields shown to be vulnerable and foes unwilling to compromise, an escalation of the regional conflict is likely, says an analyst.

frac spread

An image of an explosion is overlaid with an image of Saudi Aramco’s Abqaiq processing plant from Google Earth. (Source: Shutterstock, Google Earth)

The attack on Saudi oil processing facilities drove NGL prices sharply higher on Sept. 16 and, though they retreated some on positive news the following day, still recorded week-on-week increases across the board at Mont Belvieu, Texas.

Ethane’s price continued to rise at Mont Belvieu to its highest level in almost six months, while the hypothetical barrel reached a 15-week high. The benchmark Henry Hub natural gas price did not experience a dramatic jump following the attack but it continued its nearly month-long upward trend.

But in the aftermath of the attack, believed to have come from Iran, several questions remain unanswered. For example, what about products other than crude oil?

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Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.