(ICIS) -- The market can expect a rollover in the US June methanol contract unless crude prices drop significantly, buyers said on Thursday. The monthly contract range has been perched at 126-128 cents/gal for the past four months as energy prices have seesawed. Front-month natural gas futures have declined about 6% since early February, while crude futures have increased 7%.
Months of listless trading in the spot market have cooled the arguments of sources who often push for contract reductions based on energy prices. One buyer said a rollover was just a better bet right now.
Spot prices currently range from 107-108 cents/gal.
Methanex and Southern Chemical Company (SCC) historically have set the monthly North American contract methanol range with their nominations.