4 Sep 2020 Featured in: Top of the Barrel - Issue 9

Research Highlights - Week 36

US ethane production was seen hitting a record high over June (see Top of the Barrel – Issue 9).

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  • Ethane supply in the US reached a new record high in June, averaging around 2.14 million b/d and increasing by 270,000 b/d compared to May levels (EIA).

  • Producers had a strong incentive to recover as much ethane as possible given that natural gas prices were orbiting around decade-low levels over the period.

  • We expect ethane supply dipped slightly over July on lower recovery incentives, although we see production stabilising around July levels through the remainder of the year.