Weekly Mont Belvieu Propane-Butane price review November 10th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (4.0% and 0.7% down respectively on the weekly average):
6th November: 335.9; 387.0
7th November: 327.6; 377.8
8th November: 323.3; 372.5
9th November: 324.6; 377.1
10th November: 326.6; 380.5
The fluctuating trajectory of LPG prices persists, witnessing a return to bearish trends. Butane prices experienced a marginal decline of 0.7%, while propane saw a more substantial reduction of 4% in the weekly average. Butane concluded the week at 380.5 USD/MT, down from the previous week's 384.6 USD/MT, while Propane ended at 326.6 USD/MT, a decrease from the previous week's 334.1 USD/MT.
Oil Prices Hit Lowest Levels Since July:
Oil prices have reached their lowest point since July, primarily attributed to inventory build-up from major producers, unfavorable economic data from China, and demand erosion due to elevated cargo delivery costs. Prices hovered around 80 USD per barrel and may continue on a downward trajectory in the coming weeks unless there is a significant escalation in the Middle East crisis involving Israel and Hamas.
Depot Operations and Supply Dynamics:
While some depots, particularly in the South-South region, experienced a bit of scarcity, prices remained stable overall. The highest LPG price was recorded at 16.6 Million Naira per 20MT at Prudent Energy, Oghara depot. Prices ranged around 16.35 million Naira in Lagos, with the lowest observed at 16.1 Million Naira at Kwale Hydrocarbon Ltd, Kwale. Anticipating more cargoes in Lagos this week, we expect prices to either remain stable or decrease, considering FX rates and lower Mont Belvieu prices.
Retail Prices Maintain Stability:
The October report on retail prices of LPG in Nigeria indicates stability. The link to the report is provided HERE. We strongly encourage your participation in registering and contributing to our retail price records via our FORUM. Your engagement greatly assists us in maintaining accurate and up-to-date data.
Please do not hesitate to reach out if you have any further questions or require an in-depth analysis of these market developments. Our team is dedicated to providing the insights and guidance necessary for navigating this ever-evolving market effectively.
Thank you for your attention to this report, and we look forward to addressing any further inquiries or requests for assistance.