Weekly Mont Belvieu Propane-Butane price review September 29th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (0.8% and 1.3% down respectively on the weekly average):
25th September: 365.0; 387.3
26th September: 369.7; 391.3
27th September: 385.5; 404.6
28th September: 377.7; 397.4
29th September: 377.1; 396.1
LPG Prices at Around $400 USD:
For the second consecutive week, LPG prices have held steady just below the $400 USD mark, indicating a range-bound trend. The market appears to be in a state of equilibrium, with the potential for a breakout that could signify either a strong bullish or bearish trend. Currently, prices are encountering resistance. While there was a decrease in average prices, it was relatively modest, with Butane experiencing a 1.3% decrease and Propane a 0.8% decrease, closing at $396.1 and $369.6 USD per metric ton for Butane and Propane, respectively.
Oil Price Resilience:
Similarly, oil prices have encountered resistance around the $95 USD per barrel mark. Some analyses from trading houses suggest that crude oil may have been overbought, hinting at a potential reversal in the trend. However, several factors suggest that prices may remain bullish. These factors include the onset of the Winter season, low crude oil inventories in the US, and an optimistic economic outlook for China. All eyes are currently on Saudi Arabia, with the upcoming OPEC+ meeting scheduled for October 4th. This meeting will play a pivotal role in shaping the future of production cuts.
Local LPG Prices in Nigeria:
Depot Scarcity: Lagos, home to the majority of depots in Nigeria, recently experienced a scarcity of LPG, leading to heavy traffic jams at NAVGAS and Rainoil depots, which were among the few with LPG availability. Prices stabilized at around 14 million Naira per 20 metric tons, with the highest recorded price observed with A A Rano at 14.2 million Naira per 20 metric tons.
Retail Prices: Retail prices of LPG in Nigeria remained relatively stable, with cities like Ikorodu, Akwa Ibom, and Jos recording prices at 1000 Naira per kilogram. For a more comprehensive overview of nationwide LPG retail prices for September 2023, please refer to the September LPG retail prices in Nigeria.
Should you require further analysis or have specific questions regarding 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.