The U.S. monthly propane-to-crude ratio fell to 45% in July, having fallen steadily since the peak in April of 56%. Despite the steady decline, current levels still exceed those seen during the same period last year, up 3 percentage points compared to a year ago. Lower ratios to crude are common this time of year due to weak summer propane demand. Strong storage builds are also bringing propane prices lower relative to crude.
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- Analyst Insight
U.S. Monthly Propane to Crude Ratio - Chart Toppers
U.S. propane-to-crude ratio fell to 44% in August, down from April’s peak of 56%. Despite the slide, it remains 2 percentage points above last year.
- Analyst Insight
Propane to WTI Ratio Jumps in October, Up Slightly YOY
Propane prices have been volatile in recent months, but the propane-to-WTI relationship remains lower than in previous years.
- Blog
Are we Headed Over the Frac Spread Cliff?
The values of the crude-to-gas ratio and the Frac spread have fallen fifty percent from their highs this year. Frac spreads represent the difference between the value of natural gas and natural gas liquids (NGLs), which are heavily influenced by the price of crude. Thus the Frac spread is in effect tied to the gas-to crude ratio. Current forward curves suggest that the crude-to-gas ratio will fall another 50 percent over the next few years. Today we ask whether the Frac spread will continue it’s fall next year and beyond.
