US June methanol expected to roll - buyers

19 May 2011 22:18  [Source: ICIS news]

Methanex plant in TrinidadHOUSTON (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 


By: Lane Kelley
+1 713 525 2653



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