Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (2.1% and 5.7% up respectively on the weekly average):
3rd October: 443.0; 454.4
4th October: 448.5; 458.2
5th October: 470.7; 464.6
6th October: 477.7; 467.9
7th October: 471.3; 473.1
LPG Butane prices continued in an upward
trend for the week ending 7th October 2022; closing at 442.1 USD/MT - higher
than the previous week's close of 442.1 USD/MT.
Propane also closed higher, at 471.3 USD/MT, higher than the previous week's close of 450.7 USD/MT.
Very noteworthy, Butane prices closed higher than Propane prices for the first time since July 1st, 2022.
Is this a trend reversal confirmation?
Several factors seem to suggest that a trend reversal or upward trend reversal has occurred; namely, the Organization of Petroleum Exporting Countries (OPEC) last week's decision to cut crude oil production by 2 million barrels per day, from November 2022. Secondly, the increase in demand for Oil and Gas, as the temperature drops around the world, thirdly, the continued Ukraine - Russia War. However, several factors should be closely watched for a possible downtrend reversal; One, is the oil and gas demand from China, due to COVID-Lockdowns and recession-prone economies globally.
On the local side, prices have continued to range, increasing slightly to between 11.95 Million to 12.3 Million in Apapa. Prices remained relatively low in Port Harcourt at 12.15 Million, while the highest LPG price was at Oghara , at 12.55 Million.
LPG retail prices at the LPG plants are expected to remain within the same prevailing levels of last week.
We expect depot prices to go higher this week.