US spot ethane prices hit six-month high as natgas futures rally

10 December 2013 21:53 Source:ICIS News

US spot ethane prices hit six-month high as natgas futures rally HOUSTON (ICIS)--US spot ethane prices at the Mont Belvieu hub in Texas rose to a six-month high on Tuesday.

Ethane spot prices were assessed at 28.00 cents/gal, the highest price since the week ending 24 May, when prices hit a high of 28.50 cents/gal.

A source said ethane has followed the rally in natural gas futures, which have advanced by 7% since 4 December on strong near-term demand as a result of below-average temperatures for much of the US.

Ethane rejection has also remained high, with estimates of up to 300,000 bbl/day, sources said.

Ethane rejection is a process by which ethane is left in the natural gas stream and sold to power and heat homes and businesses.

Meanwhile, ethane demand has been stable for several months, with no reports of major cracker outages or startups.

By Bobbie Clark