Here's One Energy Bull Run That Shows No Sign of Fading: Chartby
The future is looking brighter for U.S. ethane bulls after a two-year rout sent prices to the lowest level in data going back to 2001. Ethane for delivery at Mont Belvieu in Texas climbed for eight straight days this month as Sunoco Logistics Partners LP shipped the first U.S. waterborne cargo of the plastics feedstock from the Marcus Hook terminal near Philadelphia. Exports and rising consumption by petrochemical plants are increasing ethane’s price premium over natural gas, creating an incentive for producers to boost output. The new demand sources “will require a higher ethane price to encourage producers and midstream operators to pull it out of the natural gas stream,” Amanda Townsley, senior adviser of petrochemicals and LNG for Genscape Inc., said in a blog post.