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.
Yesterday we explored the near-term developments that are more than likely to throw out new LPGs. These we can predict with a greater degree of certainty, than those further out in time. A lot can happen in the next five years, as a trader I’m always skeptical, more interested in months rather than years ahead.
So far this year there’s been a whole lot of hullabaloo over future U.S. LPG production growth. New fields, new pipelines, new fractionators, new export upgrades, may be even new terminals. You would think the rest of the world had gone napping! Judge for yourself, there seems a lot going on in various parts of the world, and it’s going to add more LPG to the international stage by 2025.