Weekly Mont Belvieu Propane-Butane Price Review: May 24th, 2024

By Godwin Okoduwa ــ Last Update 26 May 2024

Weekly Mont Belvieu Propane-Butane Price Review: May 24th, 2024

Here's a recap of the LPG price trends for the week, highlighting the average prices for Propane and Butane each day:

20/05/2024: Propane $359.5/ Butane $374.9

21/05/2024: Propane $358.7/ Butane $375.1

22/05/2024: Propane $365.8/ Butane $381.7

23/05/2024: Propane $374.8/ Butane $387.2

24/05/2024: Propane $379.4/ Butane $393.3

LPG prices are embarking on a bullish trend:

Butane prices have resumed their upward movement, concluding the week with a 4.2% increase from the previous week's average, reaching 382.4 USD/MT compared to the previous week's 367 USD/MT. Similarly, propane prices saw a 3.8% increase in the average weekly price, reaching 367.6 USD/MT, higher than the previous week's average of 353.9 USD/MT. Although the reasons behind this bullish trend are not distinctly evident, we anticipate this trend to be short-lived as we head into the summer season.

Crude oil prices continue to face challenges in climbing:

Weak physical sentiment in the markets has caused both WTI and ICE Brent prices to drop, settling at 76.70 USD/barrel and 81.13 USD/barrel, respectively, marking the lowest levels observed this year. Despite the noticeable improvement in US gasoline demand and the upcoming OPEC+ meeting potentially offering some upward momentum next week, it appears unlikely that Brent will exceed its current range of $80-85 per barrel.

Nigeria LPG depot prices struggle to rise despite high USD/Naira exchange rates:

LPG depot prices have maintained just above 16 million naira per 20 MT. The highest price recorded among the depots was 16.5 million naira, primarily in Lagos, while prices were notably lower in the South-South Depots, with Kwale Hydrocarbon selling at 16.3 million per truck and others as low as 16.1 million per 20 MT. The exchange rate continues to be unfavorable for the Naira, although it has decreased to about 1520 in the parallel market. Lagos appears to have a surplus of cargo at the depots, which has kept prices low despite the higher landing cost. For the official exchange rate, please refer to the CBN website at CBN Exchange Rate. We anticipate another week of cautious trading by marketers.

LPG retail prices:

In Lagos, plants are selling at approximately 14,000 per 12.5kg cylinder.

For further inquiries or a detailed analysis of these market developments, please feel free to contact us. Our dedicated team is committed to providing the insights and guidance necessary for navigating the dynamic landscape of the LPG market.

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Godwin Okoduwa

Godwin is an Oil and gas professional with over 20 years of experience.

2 Comments.

Kiitan Wemi - Jones
27 May 2024 - 08:14am
Very interesting update. What is your opinion on the pricing forecast for LPG price in Nigeria. Do you see it falling or rising over the next two weeks?
Reply
- Godwin Okoduwa
  27 May 2024 - 09:31pm
  There seem to be glut in the market ( over supply ), which is keeping prices down. Prices are currently below were they should be with respect to the landing cost at the depot.
  Reply