After monumental growth in 2018, are forecasts for US production growth in 2019 and 2020 sustainable? Reed Olmstead… https://t.co/mSOX35S7zV
Record strong propane builds following the shift in the summer curve. Will it continue?
Based on IHS Markit's current view of balances, fundamental indicators point to propane/propylene inventories ending the summer below "comfortable" levels which historically has led to market tightness and pricing issues in late winter months. With the propane curve in backwardation for the first two months of the summer, inventory building season got off to a slower start as merchant players lacked the incentive to put propane into storage. Builds into storage began to pick up once the curve started shifting in late May, and strengthened further after going into contango in early June.
The market appears to be realizing that record propane production alone may not be enough for inventories to reach "comfortable" levels before the winter starts and is pricing to better incentivize storage builds. As a result, weekly propane/propylene storage activity has been impressive in recent weeks, even hitting new highs for week 8 June, but will these dynamics be enough to push inventories to safe levels by the start of winter?
This content is part of our IHS Markit US NGL Markets Weekly service. For more information contact email@example.com.
- Deepwater Americas: New offshore timelines & risk driving capital flow & activity levels
- Middle East trends in upstream cost and spending
- Upstream oil & gas industry outlook: Innovating for performance, but competition for capital remains
- A deepwater case study: How adopting & simplifying standards and specifications helps cut cost and grow production
- Global Gas & LNG Markets Outlook
- Falling further from the tree: Oil and gas corporate venture activity shifts away from core E&P technologies
- IMO 2020 Basics
- China’s retail power tariff: Upward and downward pressure coexist
RELATED INDUSTRIES & TOPICS
- Energy & Natural Resources
- Commodities, Pricing & Cost
- Commodity price forecast
- Commodity trading
- Energy mix & feedstocks supply
- Financial & Trading
- Market Analysis
- Market Analysis & Forecasts
- Market trends
- Natural Gas, NGLs and LNG
- Oil & gas downstream
- Oil & gas midstream
- Oil & Gas midstream/downstream
- Oil & gas upstream
- Pricing strategy
With just 48% of floating rigs under contract presently and more scrapping needed to increase floater utilization a… https://t.co/sL1pPwKf2Z