Weekly Mont Belvieu Propane-Butane price review July 14th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (12.3% and 14.2% up respectively on the weekly average):
10th July: 302.8; 309.6
11th July: 323.3; 329.0
12th July: 321.6; 340.3
13th July: 325.3; 344.3
14th July: 328.2; 348.0
For the first time in over a month, we have consecutive higher weekly averages on Propane and Butane Mont Belvieu prices.
Butane was up by a massive 14.2%, while Propane price increased by 12.3% on the weekly average. This could mean a confirmation of an upward price trend. The aggressive swing wasn't expected and we think it's a knee-jerk reaction. We expect some price correction in the coming week.
Europe has recorded very warm weather which could mean sustained low heating demand. Also, the global economy is also not looking very good which doesn't really favor further puch in gas prices. The only factor increasing oil and gas prices at the moment is the extension of Saudi Arabia's voluntary reduction in daily output by 1 million barrels per day (bpd) until August and the decision by other countries like Algeria and Russia to decrease oil production.
Local LPG prices in Nigeria
Local depot prices reacted swiftly to the international price increase by selling at 10 Million per 20MT in Apapa from 9.4 Million in the previous week. We expect other depots in the South-South to adjust prices in the coming week.
On the retail side, June prices showed varied prices across the country but had a 9.2% average lower price than the month of May.