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Weekly Mont Belvieu Propane-Butane Price Review December 15th 2023

Weekly Mont Belvieu Propane-Butane price review December 15th 2023
Weekly Mont Belvieu Propane-Butane Price Review December 15th 2023

Weekly Mont Belvieu Propane-Butane price review December December 15th, 2023


Market Update - LPG Prices Retrace Amidst Winter Season Dynamics

Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (5.0% and 0.2% down respectively on the weekly average):


11th  December 356.6 494.9

12th  December 344.2 480.8

13th  December 342.9  468.9

14th  December 349.1 468.9

15th  December 342.9 466.6

Our recent market assessment reveals a retracement in both Propane and Butane prices, concluding lower than the previous week, despite the onset of the winter season. Butane closed at 466.6 USD/MT, down from the previous week's 500.6, while Propane closed at 342.9 USD/MT, compared to the previous week's 367.6 USD/MT. Interestingly, this decline occurred in a week when oil prices witnessed their first weekly gain in eight weeks. While LPG prices have receded, it appears to be a temporary retracement, with a rebound expected in line with general market demand during winter.


Oil Prices and Market Dynamics:

Oil prices experienced their first weekly gain in eight weeks, reaching 77 USD per barrel for Brent on Friday the 15th. The reasons behind this uptick include a larger-than-expected drawdown in US oil inventory or merely market price action. Despite OPEC production cuts and skirmishes by Houthi rebels around the Mediterranean, the direction of oil prices remains uncertain. General sentiments regarding the potential impact of renewables on oil demand continue to play a significant role in shaping oil price dynamics.


Nigeria LPG Depots:

In Nigeria, LPG depot prices have further decreased to 15.1 Million Naira per 20MT in Apapa, with unconfirmed reports of prices falling below 15 Million Naira at some depots. The surprising aspect is that local prices did not respond to the previous week's increase in international prices. This unexpected behavior could be attributed to the removal of VAT and import duty on LPG by the Federal Government of Nigeria, which has seemingly contributed to a substantial reduction in prices. However, we will closely monitor Foreign Exchange rates, as it could lead to a drastic change in LPG prices.


LPG Retail Prices:

Anticipating a significant decrease in retail prices nationwide, we shall communicate updates in due course.


Please feel free to reach out if you have any questions or require a more in-depth analysis of these market developments. Our team is committed to providing the insights and guidance necessary for effectively navigating this dynamic market.

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Godwin Okoduwa

Godwin Okoduwa

Godwin is an Oil and gas professional with over 20 years of experience.  

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