Weekly Mont Belvieu Propane-Butane price review May 19th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (5.8% and 3.9% down respectively on the weekly average):
15th May: 327.9; 327.0
16th May: 328.7; 328.6
17th May: 334.6; 336.6
18th May: 328.6; 335.2
19th May: 328.1; 335.5
Although LPG Butane prices made a further average decline of 3.9% last week, it closed higher by 1%; closing at 335.5 USD/MT against a previous week's close of 332.1.
However, Propane prices declined lower by 1%; 328.1 USD/MT against the previous week's close of 332.5 USD/MT.
The price direction for LPG is still bearish as we head into summer. Oil prices are rising again as we see a likely positive decision being made on the US 'Debt Ceiling' negotiations near an end. Also, recent economic figures from China suggest a lower-than-projected performance which does not favor oil prices. However, the International Energy Agency (IEA) stated recently that it expects global oil demand to reach 102 million barrels per day (BPD) at around the same time these disappointing Chinese data figures were released that it expects global oil demand to increase faster than expected this year to reach 102 million barrels per day (bpd), which is an increase of 2.2 million per day against last year.
Local LPG prices in Nigeria
Local prices at the depots fell further to N9.7 Million Naira in Apapa depots while the highest selling by Friday was Prudent Energy, Oghara at 10.4 Million per 20MT. We expect supply pressures and dropping international prices to continue to push prices down.
On the retail side, the 12.5kg LPG cylinder sells for around N9000.00 to N10,000.00 in most parts of the country.