In yesterday’s SIMON SAYS I explained the slightly more conventional relationships between motor gasoline and normal butane, as time fast approaches when the winter gasoline vapour pressure specification kicks-in, but as always, it’s in a market where the supply and demand factors are competing with each other to set new equilibriums, impacting prices along the curve.
Everyday we have our eyes and ears focused on propane. It’s natural as propane is the most common, by far, of the Natural Gas Liquids (NGLs) processed into individual products. This is exacerbated by the fact that a lot of refinery butanes, over history, never actually leave the refinery front gate. My blog U.S.
Nearly all contracts I’ve seen for LPG exports out of the U.S. Gulf are written as propane loadings, with a normal butane option, but only if declared by a certain date, and then limited to half the cargo. So, has butane been demoted to the role of “second-class” citizen in the relentless growth of U.S. LPG exports?