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Weekly Mont Belvieu Propane-Butane price review December December 22nd, 2023
18th December 349.7. 483.0
19th December 348.7. 482.1
20th December 354.3. 483.6
21st December 349.1 470.8
22nd December 352.0 467.4
Market Update - LPG Prices avoid the 500 USD level
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (0.9% and 0.3% up respectively on the weekly average):
Our market assessment reveals a return, albeit minimally, to the upward trend; with an average increase of 0.9% and 0.3% for Propane and Butane prices for the week ending 22nd December 2023. This is just after a significant price decline on LPG in the previous week. But prices have avoided the 500 USD level amid the Winter season, which is a softener for consumers in Nigeria who have been affected by FX rates in recent times and have started to enjoy some 'discounts ' from the removal of Import Duty and VAT on LPG.
Oil Prices and Market Dynamics:
As we enter the Christmas holiday period, Trading liquidity has dissipated, and even Angola's unexpected departure from OPEC failed to sway oil prices in a particular direction. The emergence of Red Sea diversions as a new trend in international shipping has added an element of complexity to the market. Despite this, ICE Brent has maintained stability around $80 per barrel, while WTI has seen a modest uptick to $75 per barrel. This marks the second consecutive week of week-on-week gains, fully rebounding to levels observed a month ago. We will continue to watch the market as new factors have emerged, making price projection quite uncertain.
Nigeria LPG Depots prices:
In Nigeria, LPG depot prices have further decreased to 14.7 Million Naira per 20MT at NAVGAS and Rainoil depots, both in Lagos. The removal of VAT and import duty on LPG has continued to bring down prices locally, even as international prices have remained lower than 500 USD.The FX rate is one factor that could easily sway prices the other direction and we shall continue to monitor the events.
Retail LPG Prices:
We anticipate a significant decrease in retail prices nationwide. LPG prices sold for N11,500.00 per 12.5kg in Lekki and lower in some locations in Lagos. More information on retail shall be communicated 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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