Weekly Mont Belvieu Propane-Butane Price Review: November 29th, 2024

By Godwin Okoduwa ــ Last Update 02 December 2024

Weekly Mont Belvieu Propane-Butane Price Overview: November 29, 2024

Here’s a summary of this week’s LPG price trends, with daily average prices for propane and butane:

25/11/2024: Propane $430.6 / Butane $512.9

26/11/2024: Propane $435.0 / Butane $527.7

27/11/2024: Propane $428.8 / Butane $519.5

Butane Prices Surge Sharply

As anticipated in last week's analysis, LPG prices reversed sharply to a bullish trend for both Butane and Propane. Butane averaged $520.1 per metric ton, a 6.6% increase from $488.0 the previous week. Propane prices followed suit, closing at $431.5 per metric ton, a 2.9% rise from $419.3.

Crude Oil Prices Decline Amid Geopolitical Uncertainty

Crude oil prices showed slight fluctuations amidst ongoing geopolitical tensions surrounding the Ukraine-Russia conflict and uncertainty around OPEC+ actions, which delayed its December 1st meeting due to the Thanksgiving holiday in the U.S. Both WTI and Brent ended lower, closing at $69.08 and $73.24 per barrel, respectively, compared to $70.7 and $74.20 last week. However, a potential upswing is expected in the coming week, driven by the Ukraine war and OPEC+ decisions.

LPG Depot Prices Remain Below Landing Cost

Depot prices for LPG remained surprisingly below the landing cost, with most depots selling at under ₦23 million per 20MT. A few depots in the South-South region posted prices at ₦24 million, which aligns more closely with realistic offshore supply costs. However, the pricing disruption is likely influenced by Dangote Refinery, reportedly selling at sub-₦22 million per 20MT to off-takers. While the exact volumes supplied by Dangote remain unclear, significant output from the refinery could be a game changer for the market. Meanwhile, the persistent depreciation of the naira against the USD continues to exert upward pressure on LPG prices.

Retail Prices Drop to ₦16,000 in Lagos

Retail LPG prices have slightly eased in Lagos, with reports indicating that a 12.5kg cylinder is being refilled for as low as ₦16,000 in areas like Surulere.

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