Weekly Mont Belvieu Propane-Butane price review October 14th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (2.1% and 3.7% down respectively on the weekly average):
9th October: 360.8; 353.9
10th October: 355.9; 351.6
11th October: 357.7; 357.6
12th October: 359.7; 353.9
13th October: 360.3; 357.9
LPG Prices diminish further on the weekly average:
For the fourth consecutive week, LPG prices have continued to hover below the USD 400 mark, currently averaging around USD 350. Specifically, Butane prices showed a noteworthy increase, closing at USD 357, albeit above the previous week's close but remaining lower on the week's average. Propane also mirrored this trend, with lower average prices but a higher closing figure, settling at USD 360.3 compared to the previous week's close of USD 356.2/MT. The price resilience can be attributed to the recent escalation of conflict in the Middle East, particularly between Hamas and Israel. This development has temporarily halted the new bearish trend that had begun in recent weeks, raising questions about how the crisis in the Middle East might influence LPG prices.
Oil Prices on the Rise:
Oil prices have once again rebounded and are on an upward trajectory, with a current direction towards $90 USD per barrel. This resurgence can be attributed to the escalating conflict between Hamas and Israel and recent sanctions imposed by the United States on Iran and Russia. We anticipate that, as long as the crisis in the Middle East continues to escalate, oil and gas prices will experience upward pressure.
Local LPG Prices in Nigeria:
Depot Operations: The market witnessed an influx of supply as Matrix Energy depot resumed operations at their Warri depot. The LPG scarcity that had been experienced at the depots in recent times appears to have subsided. Notably, prices have remained relatively stable, with no significant movement from the 14.5 million Naira peak. This stability may be attributed to subdued international prices, which have yet to breach the USD 400 threshold as initially anticipated.
Retail Prices: Retail prices of LPG in Nigeria currently range from just under 10,000 Naira to 12,000 Naira per 12.5kg cylinder nationwide. We encourage you to register and contribute to our retail price records via our FORUM to help us maintain up-to-date and accurate data.
Should you require further analysis or have specific questions concerning these market developments, please do not hesitate to reach out. We are here to provide the insights and guidance you need to navigate this dynamic market effectively.
Thank you for your attention, and we look forward to assisting you with any further inquiries.