Weekly Mont Belvieu Propane-Butane Price Review February 9th 2024

By Godwin Okoduwa ــ Last Update 11 February 2024

Weekly Mont Belvieu Propane-Butane price review February 9th 2024

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

05/02/202 4495.9 470.8

06/02/2024 482.3 474.5

07/02/2024 476.4 475.9

08/02/2024 473.1 479.9

09/02/2024 478.8 486.7

Butane remains below 500 USD/MT. Butane prices ended with a rather insignificant average price increase of 0.8%, ending at 477.6 USD/MT. At the same time, there was also a marginal decline in the average propane price during the week, by 0.05%, ending the week at 481.3 USD/MT.

Oil Prices and Geopolitical Dynamics:

Less enthusiastic Oil demand has been the main reason for the sideways trading of oil and gas commodities. Although middle - east tensions persist, it doesn't seem to drive prices higher. we expect lower prices in the immediate term.

Nigeria LPG Depots:

In Nigeria, LPG depot prices continue to move upwards despite the slow movement of international prices. FX issues continue to plague the market as the CBN rate continues to move closer to the parallel market rates. Prices hit over 21 million all over the country, but some depots like Kwale Hydrocarbon sold as low as 19 Million during the week. As long as the CBN or NAFEX rates continue to be above 1400 per USD, prices will continue to be at 21 million naira level.

Retail Prices:

Retail prices went to new highs of 15,000 Naira per 12.5kg in Lagos and much more outside Lagos, as stakeholders struggled with the high cost of the commodity.

Just like the Depot prices, we do not see an end in sight till the Exchange rate begins to favor the Naira over the dollar. One thing to look out for is how the CBN reforms will improve the Naira.

Please feel free to reach out if you have any questions or require a more in-depth analysis of these market developments. Our team is committed to providing the insights and guidance necessary for effectively navigating this dynamic market.