Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (0.6% and 2.2% up respectively on the weekly average):
7th November: 467.3; 472.4
8th November: 462.9; 471.1
9th November: 451.3; 465.0
10th November: 449.7; 466.3
11th November: 451.0; 464.5
LPG Butane prices closed by about 0.2% lower, closing at 464.5 USD/MT against the previous week's close of 465.5 USD/MT. Propane prices followed the same trend but closed lower by closing 2% lower 451 USD/MT against the previous week's close of 458.8 USD/MT. Interestingly, though both commodities showed a higher weekly average price, they closed lower, suggesting that factors keeping prices down are still at work.
Europe has experienced warmer weather than usual around this time of the year; according to Bloomberg "Europeans have a greater probability of experiencing temperatures significantly higher than normal this winter, potentially offering relief to tight heating-fuel markets, according to the European Unionâ€™s Copernicus Climate Change Service" - this means we may not experience significantly higher gas demand for heating, this winter. On the other end, international oil prices closed higher after the Chinese Government eased some of its Covid restrictions, boosting hopes that China's oil demand could start bouncing back - a factor for bullish sentiment for oil and gas prices.
The pushback on Transition Fuel from Oil & Gas continues, as African countries insist on Fossil-Fuel prosperity; asking for permission to continue their Oil & gas development to remove many from poverty while resisting the deep emission cuts argument.
Local LPG prices in Nigeria
On the local side, the Naira/USD Foreign Exchange rate at the black market eased significantly by about 15%, which is expected to affect prices as the landing cost of LPG reduces for new imports. Last week, prices remained at 12.5 Million Naira per 20MT or lower at the depots, although more LPG cargoes flooded the market at the end of the week. Prices are expected to dip a little this week.
LPG retail prices at the LPG plants should remain within the same prevailing levels; between N9,000.00 to 10,000.00 per 12.5kg nationwide.