Weekly Mont Belvieu Propane-Butane price review September 1st 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (6.2% and 5.9% up respectively on the weekly average):
28th August: 351.3; 386.2
29th August: 353.0; 389.2
30th August: 355.4; 393.1
31st August: 360.5; 390.6
1st September: 376.1; 408.5
Massive price increases on both Butane and Propane prices. Butane price returned back to the 400 USD mark, closing at 408.5 USD/MT, higher than the price two weeks ago, which signifies a solid bullish set-up. Propane prices closed at 376.1 USD/MT from the previous week's close of 350.2.
Despite dire economic news from major markets globally, oil prices have continued to go upwards, and this is due mainly due to sustained lower oil inventories, coupled with reduced oil production by Saudi Arabia and OPEC+. Some stranded oil vessels from Gabon may have also caused panic in the market.
However, we do not expect prices to continue the bullish trend due to the economic situation globally.
Local LPG prices in Nigeria
Local depot prices sold for as low as 11.4 Million Naira per 20MT at the beginning of the week in Apapa, but prices got as high as 12.2 Million Naira at NAVGAS depot by Thursday. Other depots in the South-South sold as high as 11.9 million naira.
LPG price direction this week may remain at the same levels i.e. below 12 Million. LPG supply in the month of August decreased compared to the month of July, despite the recent spike in demand as a result of PMS Generators to LPG conversion. One factor that has kept prices up is the Naira/USD exchange rate which has continued to be over 900 Naira per USD in the open market.
On the retail side, prices Of Cooking Gas Purchases increased by 7.69% From July To August 2023, selling at an average price of over 9000 Naira per 12.5kg. See the post here.