Weekly Mont Belvieu Propane-Butane Price Review: February 7th, 2025

Weekly Mont Belvieu Propane-Butane Price Review: February 7th, 2025

Weekly Mont Belvieu Propane-Butane Price Overview: February 7th, 2025

Here’s a summary of this week’s LPG price trends, with daily average prices for propane and butane:

03/02/2025: Propane $486.3 / Butane $513.2

04/02/2025: Propane $480.9 / Butane $495.5

05/02/2025: Propane $477.4 / Butane $487.0

06/02/2025: Propane $477.7 / Butane $493.3

07/02/2025: Propane $483.1 / Butane $494.2

LPG price Overview

LPG prices continued their downward trajectory, with butane experiencing a significant decline compared to the previous week's averages of 469.1 USD/MT for propane and 519. USD/MT for butane.

Propane: Averaged 481.1 USD/MT, up 2.6% from the previous week’s 469.1 USD/MT, while Butane averaged 496.6 USD/MT, marking a 4.5% decline from 519.9 USD/MT the prior week.

Key Factors Affecting LPG Prices

Weak Butane Demand Pressures Prices: Butane prices fell below $500/MT for the first time in weeks, driven by sluggish demand in Asian and European markets.

Warmer-than-expected winter temperatures reduced heating demand.

Stable Supply Conditions: There were no major supply disruptions, keeping the market well-supplied and preventing sharp price fluctuations.

Crude Oil Volatility Impacting LPG Markets: The decline in crude oil prices affected overall LPG market sentiment, especially for butane.

Refinery operations remained steady, ensuring consistent LPG availability.

Crude Oil Market Analysis

Crude oil prices declined for a second consecutive week, with WTI closing at $71.33 and Brent at $74.98, both down from the prior week's $72.94 and $76.85, respectively.

Investor Sentiment Weakened: Concerns over slowing global demand and higher U.S. crude inventories weighed on prices: The latest data showed rising U.S. stockpiles, reducing supply concerns.

Impact of Clean Energy Investments & Policy Decisions: Global investment in clean energy hit a record $2.1 trillion, reinforcing a long-term shift away from fossil fuels.

The UK’s recent court ruling against oil developments (Rosebank and Jackdaw fields) also pressured market sentiment.

Geopolitical Risks & Supply Disruptions: Ukraine's drone strike on Russia’s Nizhny Novgorod refinery disrupted output, but its impact on crude prices remained limited. OPEC+ production cuts continued to provide some support, preventing steeper declines.

Market Outlook

LPG prices are likely to remain under pressure, with butane particularly vulnerable to further declines.Crude oil markets remain volatile, with demand uncertainty and geopolitical risks shaping price movements.Any shifts in U.S. interest rate policy or additional geopolitical disruptions could influence price trends in the coming weeks.

South-South prices adjust to Dangote prices.

LPG depots in the South-South adjusted prices in response to Dangote prices for as low as 17,6 Million per 20MT at Stockgap depot during receipt of LPG product but adjusted to 20.05 Million after product receipt. Reports suggest that Offtakers are still selling at circa 18 Million per 20MT. Kwale Hydrocarbon sold for 18 Million by the end of the week. Depots in Apapa sold for as low as 19 Million per 20MT, while Dangote remained at circa 18.6 Million per 20MT. The decrease in prices in the South-South is expected to reduce the rush at Dangote and create some balance in the market. However, we may receive a response from the Big man, which could send the market into another frenzy. We must also keep our eyes on the Naira which is gaining ground against the USD, finishing at about 1585/USD at the end of the week.

LPG Retail Prices steady.

Retail LPG prices remained as low as N15,000/12.5kg in Lekki and other parts nationwide, as LPG depot prices continue to crash.

Visit the LPG forum to share local Retail prices and participate in the discussion.

• Lpg
• Mont belvieu
• Propane
• Butane