Weekly Mont Belvieu Propane-Butane Price Review January 19th 2024

By Godwin Okoduwa ــ Last Update 22 January 2024

Weekly Mont Belvieu Propane-Butane price review January 19th, 2024

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

16th January, 2024 435.3606 475.0838

17th January, 2024 443.1756 473.9513

18th January, 2024 479.6456 493.7700

19th January, 2024 491.0425 503.1131

LPG prices breach the 500 USD mark for the first time in 9 months.

LPG prices have breached the $500 mark, marking the first occurrence in the last nine months. The week witnessed a substantial average weekly price increase of 7.5% for Butane, while Propane sustained an impressive double-digit surge of 17.1%. Multiple factors may have contributed to these unprecedented spikes, with geopolitical tensions and fresh data from international bodies playing significant roles.

Oil Prices and Geopolitical Dynamics:

Last week, heightened tensions in the Middle East were exacerbated by missile exchanges between Pakistan and Iran, resulting in a surge in oil prices. Simultaneously, a cold snap in the United States disrupted supply in certain quarters while increasing demand for heating. The International Energy Agency (IEA) predicts a global oil demand of 1.24 million barrels per day in 2024, contributing to the upward momentum in oil prices. Conversely, OPEC projects a slowdown in oil demand to 1.85 million barrels per day, with the 2024 demand reaching 2.25 million barrels per day. We anticipate some retracements in the upcoming weeks.

Nigeria LPG Depots:

In Nigeria, LPG depot prices displayed notable variations across different regions during the week. Apapa reported sales at approximately 15.6 Million Naira per 20MT, while Matrix in Warri recorded a higher rate at 17 million Naira. Other depots in the South-South region reported prices just above 16 Million Naira. This week, we project higher depot prices, stemming from a rising FX rate which has already surpassed 1300 Naira per USD and Mont Belvieu LPG prices exceeding the $500 mark.

Retail Prices:

Retail prices for LPG exhibited a range from 11,200 Naira per 12.5kg to approximately 12,000 Naira in Lagos State.

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.