Weekly Mont Belvieu Propane-Butane price review September 8th, 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (7.1% and 3.1% up respectively on the weekly average):
4th September: Bank holiday
5th September: 380.3; 412.5
6th September: 381.6; 404.0
7th September: 384.6; 400.6
8th September: 392.4; 405.6
Interesting price movements last week. Though we had an average weekly increase in the price of Butane, the closing price at 405.6 USD/MT was lower than the previous week's close at 408.5. Does this signify a slowing down of the recent bullish trend? On the other hand, the Propane price had a significant average weekly increase and a higher week's close against the previous week's price.
Oil prices continue the bullish run; crossing the 90 USD mark for the first time since November 2022, after Saudi Arabia and Russia announced a fresh extension to their voluntary supply cuts, a combined 1.3 million barrels/day reduction for another three months through December 2023. The continuous drop in the US' Crude Oil inventories further reinforces the bullish trend. Despite all these we think the bullish trend won't last long, due to the economic situation in China; macroeconomic data from China showed a weaker-than-expected result last week - a continuation of the unpleasant economic news from China.
Local LPG prices in Nigeria
Local depot prices hit 13 Million for the first time ever. The last time prices hit this region was in June 2022, when it sold for 12.8 Million at some depots. The South-South and South East experienced some scarcity earlier, but with vessels coming in, we expect prices to drop slightly. The Naira/FX rate is a major factor for LPG pricing and the Mont belvieu prices.
On the retail side, prices Of Cooking Gas vary across cities nationwide and now sell from N9000 per 12.5kg in most locations nationwide.