Frac Spread: Viral Woes For Oil, Gas, NGL Prices

Volatile global crude markets weigh down the rest of oil and gas commodities.

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(Source: HartEnergy.com, Shutterstock.com)

How are oil and gas commodity markets reacting as the COVID-19 illness continues to sweep through the world and its U.S. death toll climbs into the double digits? Not well.

The WTI price ducked under $45 per barrel (bbl) on Feb. 28, the same day that Brent flirted with closing below $50/bbl. Henry Hub’s price of $1.684 per million cubic feet (MMcf) on Feb. 28 set a 12-month low.

Butane sunk to a six-month low at Mont Belvieu, Texas, and that hub’s natural gasoline price dropped below 96 cents per gallon (gal) for the first time since June 2017, or 32 months. Overall, the Mont Belvieu hypothetical NGL barrel sunk below $18 for the first time since August.

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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.