In yesterday’s SIMON SAYS we were trying to work out why propane in Enterprise’s Non-TET system was taking such a bashing. It’s amazing that the same product, in pretty much the same place, is being bought and sold at such a discount, one that’s nearly been as high as 20%!
The British Prime Minister Harold Wilson, in the early 1960s, was attributed with the phrase, “a week is a long time in politics”, I think the catchphrase could well be applied to the week we’ve just seen in the LPG world! It’s not that it’s been a dramatic turnaround, it’s more that the market is less predictable than we thought or expected.
I’ve eluded to how the Asian market had lost its mojo in recent blogs, not unexpected at this time of year, but it’s thrown up a lot of questions as to what happens next. In yesterday’s blog we concentrated on the East/West spread, but today I need to answer where the U.S. / Asian ARB is heading.