Weekly Mont Belvieu Propane-Butane Price Review February 23rd 2024

By Godwin Okoduwa ــ Last Update 25 February 2024

Weekly Mont Belvieu Propane-Butane price review February 23rd 2024

LPG price average prices for each day during the week for Propane and Butane respectively.

19/02/2024 Bank Holiday

20/02/2024 475.6 486.1

21/02/2024 459.1 476.5

22/02/2024 455.2 472.7

Butane retraces:

This week, LPG prices maintained their fluctuating trend, with USD 500 proving to be a significant resistance level. Prices rebounded from the $500 mark once again after last week's testing. By Thursday, February 22nd, prices experienced a decrease of 4.13%, averaging at USD 478 per MT. Similarly, propane prices saw a decrease in average price by 4.93%, with propane averaging at USD 463 per MT. LPG prices continue to oscillate within the range of $450 to USD 500 per MT.

Oil Prices and Geopolitical Dynamics:

Oil prices remained relatively stable this week, with WTI closing at USD 77 and Brent at USD 82 per barrel. The oil market has exhibited minimal volatility in recent weeks.

Interesting Week Ahead for Nigeria LPG Depots:

The upcoming week poses an intriguing outlook for LPG prices, particularly as the Naira gained ground against the USD over the weekend. USD figures on Binance suggest a potential decline to 1650 from the previous 1800 regions by last Thursday. This uptick in the Naira may stem from recent CBN reforms aimed at restricting dollar withdrawals from banks and reforms in Bureau De Change operations. A decrease in USD rates could potentially lead to a decline in LPG prices at the depot. Last week, other depots followed NAVGAS in selling at 23 million Naira per 20 MT, with more expected to join in the coming week. However, the shift in the Naira/USD rate may prompt a reversal in LPG depot prices. It is crucial to monitor CBN rates, which NLNG and NNPC utilize for LPG pricing. As of February 22nd, 2024, the CBN rate for the Naira/USD stood at 1489. Another factor to consider is the potential restriction on LPG exports, which could alleviate pressure on LPG supply and FX. Stay tuned for our post on the effects of the suspension.

Retail Prices:

Retail prices remained steady at around 17,000 Naira per 12.5kg in various locations outside Lagos. We enter an interesting period with the implementation of new CBN reforms on FX transactions.

For further inquiries or a deeper analysis of these market developments, please don't hesitate to contact us. Our team is dedicated to providing the insights and guidance necessary for navigating this dynamic market landscape.