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A Crack in the Rock of Gibraltar, Encore Edition - Crazy Pricing for Mont Belvieu Propane Obliterates Hedges

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Manage episode 452306310 series 2624419
Indhold leveret af RBN Podcast and RBN Energy. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af RBN Podcast and RBN Energy eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.
Exactly the same product. Exactly the same day. In storage very nearby. Yet their prices diverged by 17 cents per gallon — a spread equivalent to $7 per barrel. That’s a very substantial difference for prices that typically are almost indistinguishable, differing by an average of only 0.3% in recent years. The disparity roiled the financial underpinnings of exports for over a month and busted numerous inventory hedges. Is this some rare commodity? Hardly. It’s Mont Belvieu propane, the Rock of Gibraltar benchmark propane price in the U.S., and to a great extent around the world. But during October there was a crack in that rock a mile wide.
  continue reading

1345 episoder

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Manage episode 452306310 series 2624419
Indhold leveret af RBN Podcast and RBN Energy. Alt podcastindhold inklusive episoder, grafik og podcastbeskrivelser uploades og leveres direkte af RBN Podcast and RBN Energy eller deres podcastplatformspartner. Hvis du mener, at nogen bruger dit ophavsretligt beskyttede værk uden din tilladelse, kan du følge processen beskrevet her https://da.player.fm/legal.
Exactly the same product. Exactly the same day. In storage very nearby. Yet their prices diverged by 17 cents per gallon — a spread equivalent to $7 per barrel. That’s a very substantial difference for prices that typically are almost indistinguishable, differing by an average of only 0.3% in recent years. The disparity roiled the financial underpinnings of exports for over a month and busted numerous inventory hedges. Is this some rare commodity? Hardly. It’s Mont Belvieu propane, the Rock of Gibraltar benchmark propane price in the U.S., and to a great extent around the world. But during October there was a crack in that rock a mile wide.
  continue reading

1345 episoder

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