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Energy Transfer Says Jump in Gas Prices, Strength in NGL and Refined Products Boost 2Q2021 Results
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Asia LPG market near contango on weak pre-summer N Asia demand, ample supply
Softening North Asian heating demand ahead of summer and healthy supply to Asia from the US and Middle East in June have flattened the prompt month market structure and could soon move it into contango for the first time in seven months, trade sources said May 3.
June/July CP propane swaps structure was indicated at parity May 3, steady to the April 30 value, and narrowing from a $4/mt backwardation April 28, S&P Global Platts data showed.
The front month structure has been in backwardation since Oct. 8, after standing at parity Oct . 7 and at a contango of between $1 and $17/mt between Sep. 18 and Oct. 6, according to Platts data.
Singapore Softening North Asian heating demand ahead of summer and healthy supply to Asia from the US and Middle East in June have flattened the prompt month market structure and could soon move it into contango for the first time in seven months, trade sources said May 3.
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June/July CP propane swaps structure was indicated at parity May 3, steady to the April 30 value, and narrowing from a $4/mt backwardation April 28, S&P Global Platts data showed.
The front month structure has been in backwardation since Oct. 8, after standing at parity Oct . 7 and at a contango of between $1 and $17/mt between Sep. 18 and Oct. 6, according to Platts data.
Bloomberg s Hottest Energy Picks For 2021
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Up to 11 Feb-loading US LPG cargoes to Asia canceled as arbitrage closes, fog disrupts ships
Around 10 to 11 LPG cargoes loading in February from the US to Asia have been canceled as the arbitrage narrows due to a two-week retreat in Asian prices and disruptions caused by closures of the Houston Ship Channel since Jan. 20, trade and shipping sources said.
The cancellations will reduce US cargo arrivals to Asia to 1.6 million mt in March from 2.3 million mt in February, market sources with close knowledge of the matter told S&P Global Platts.
Lower US volumes, along with Saudi Aramco’s cancellations of February-loading cargoes to up to eight lifters following Saudi Arabia’s decision at the Jan. 5 OPEC+ meeting to cut oil production by 1 million b/d in both February and March, will constrict supply in Asia in March, the sources said.
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