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ANALYSIS: NGLs Year in Review: Butane, isobutane and natural gasoline
HOUSTON, December 29, 2015 (PCW) -- Butane and isobutane spot prices have lost nearly 22% of their values since the beginning of the year as crude oil saw a similar 28% decrease. Natural gasoline, in contrast, has only come off 2.5% during the same time frame.
Unlike the lighter components of the NGL barrel (read last week’s Focus piece here), the butanes hit their year-to-date lows in June as seasonal demand for butane in gasoline blending ebbed. Indeed, butane and isobutane entered the winter blending season -- when more butane can be added to the gasoline mix -- at all-time lows for that time of year, which ultimately incentivized increased use and help the butanes rally.
In late November, isobutane, which has been almost flat to butane for the whole year, held as much as a 4.75 cpg premium over normal butane on a spate of short-covering and an unexpected major isomerization unit outage. -- Samantha Hartke
To read the full analysis, check out NGLs Week here.