Weekly Mont Belvieu Propane-Butane price review January 13th, 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (5.9% and 7.5% up respectively on the weekly average):
9th January: 392.2; 472.0
10th January: 404.1; 485.7
11th January: 412.7; 517.6
12th January: 425.6; 508.2
13th January: 425.3; 492.6
LPG Butane prices closed higher by 8% in a quick reversal from the previous week; closing at 492.6 USD/MT against the previous week's close of 457.5 USD/MT. The price closed higher than the week's close at the end of 2022, which seems to suggest a strong bullish trend in the coming weeks. A very important point in the price action is the breaking of the 500 USD mark again. Propane prices also experienced the same trend, closing at 425.3 USD/MT, 11 % higher than the previous week's close of 384.7 USD/MT.
The bounce back from the worst start into a year in over three decades (according to a popular oil and gas source) may be due to market sentiment for a sustained China market bounce back; even as the bearish sentiments died down from the week global growth forecast shared by financial houses globally. Oil prices also bounce back during the week. The projected trend in the near term is not certain as the price trend seems to be driven by geopolitics these days. One definite catalyst for a sustained bullish trend is a 're-awakened' China market and this is what the market would be watching closely.
Local LPG prices in Nigeria
On the local side, prices continue to drop and fell to 11.75 Million Naira at Apapa. By the close of business on Friday, the LPG depot price was highest at Prudent Energy Oghara, selling at 12.3 Million per 20MT, way higher than others with the closest, selling at 12 Million Naira in Port Harcourt. The drop in prices is due to low demand as a result of the holiday season.
LPG retail prices at the LPG plants should remain within the same prevailing levels; between N9,000.00 to 10,000.00 nationwide.