The ratio of NGL prices to crude oil weakened to 0.36 on Friday (green oval, right-hand graph), a level last seen in the fall of 2024. Over the past six months, the ratio’s decline can be attributed to lower prices for ethane and butanes (down by 13% and 8% respectively) and a higher crude oil price (up by 8%), supported by a ‘war premium’ stemming from escalating tensions with Iran and the associated risks to Middle East supply and shipping flows through the Strait of Hormuz.
The ratio so far during 2026 has averaged 0.39, meaning Mont Belvieu NGLs have averaged 39% of WTI crude oil at Cushing. As shown in the left graph below, the annual NGL-to-crude ratio since 2013, has averaged 0.42, ranging between 0.36 and 0.52 (red line).
