19 May 2011 22:18 [Source: ICIS news]
HOUSTON (ICIS)--The market can expect a rollover in the US June methanol contract unless crude prices drop significantly, buyers said on Thursday.
The monthly contract range has been perched at 126-128 cents/gal for the past four months as energy prices have seesawed. Front-month natural gas futures have declined about 6% since early February, while crude futures have increased 7%.
Months of listless trading in the spot market have cooled the arguments of sources who often push for contract reductions based on energy prices. One buyer said a rollover was just a better bet right now.
“That’s my best guess,” a buyer said.
Spot prices currently range from 107-108 cents/gal.
Methanex and Southern Chemical Company (SCC) historically have set the monthly North American contract methanol range with their nominations.
NYMEX front-month crude futures closed at $98.44/bbl, down by 9% compared with $108.15/bbl a month ago.
Methanol prices, as with many petrochemicals, tend to track crude values over the long term.
($1 = €0.70)
For more on methanol visit ICIS chemical intelligence
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections