Weekly Mont Belvieu Propane-Butane Price Review March 8th 2024

By Godwin Okoduwa ــ Last Update 10 March 2024

Weekly Mont Belvieu Propane-Butane price review March 8th 2024

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

04/03/2024 422.7 446.8

05/03/2024 417.8 435

06/03/2024 425.6 443.7

07/03/2024 418.4 442.8

08/03/2024 406.4 437.1

Butane prices hit lowest levels since November 2023:

This week witnessed significant declines in LPG prices. Both propane and Butane prices had average weekly price decreases of 6% and 6.20 percent respectively. Propane closed at 405, while Butane closed at 439.41 USD/MT, both finishing closer to 300 USD than 500 USD. It may just be an indication of confirmation of a bearish price movement after weeks of ranging movement.

Oil Prices and Geopolitical Dynamics:

A lot of contrasting developments that could favor or go against oil and gas prices. Firstly, there was the news of an increase of US crude inventories, which could cause a bearish move in prices, then we got positive economic data from China and impressive demand from India. And of course, the OPEC+ agreed to extend the production cuts. Prices reduced marginally at the end of the week ending at 78.6 USD and 82.7 USD/bbl for WTI and Brent respectively.

Interesting depot price direction for the Western and South-South regions:

Depot prices for LPG exhibited significant price differences between depots in Lagos and depots in the South-South. By Friday, depot prices in Lagos were about 20.3 Million per 20MT, but in the South-South, depots were selling for 22 Million Naira per 20 MT. The interesting variance in prices could make plant owners with trucks embark on trips to Lagos to buy LPG. With the drop in international prices, we expect further drop in prices in the coming weeks. The FX situation remains the same with USD/Naira around 1500 - 1600.

LPG Retail Prices:

LPG Retail prices remained relatively stable, averaging around 17,000 Naira per 12.5kg at various locations outside Lagos. Notably, in Lekki, a 12.5kg cylinder sold for as low as 15,000 Naira. Anticipations suggest a potential drop in retail prices in the coming week.

For further inquiries or in-depth analysis of these market developments, please do not hesitate to reach out to us. Our dedicated team is committed to providing the insights and guidance necessary for navigating the dynamic landscape of the LPG market.