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Weekly Mont Belvieu Propane-Butane price review January 26th 2024
LPG price average prices for each day during the week for Propane and Butane respectively.
22nd January, 2024 461.2 505.1
23rd January, 2024 440.2 484
24th January, 2024 452.8 481.6
25th January, 2024 460.8 479.3
26th January, 2024 457.8 467
LPG prices rebound sharply.
LPG prices rebounded with Propane and Butane average prices ending the week at 457.8 and 467 USD/MT respectively.
While international oil prices went up during the week, LPG prices seemed to have hesitated, pulling back from the 500 USD mark. It seems to suggest we shouldn't expect higher than 500 USD prices soon.
Oil Prices and Geopolitical Dynamics:
Last week, the tensions in the Middle East continued; attacks around the Red Sea region continued, affecting crude oil prices. Brent crude went above 80 USD per barrel as a result of the tensions and better than expected US economic data. We expect higher crude oil prices as long as the tension in the Middle East, especially the Red Sea channel, which is a major route for marine vessels, is sustained.
Nigeria LPG Depots:
In Nigeria, LPG depot prices are beginning to respond to higher Naira/ USD exchange rates, with NAVGAS increasing LPG depot price to 17 million Naira per 20MT. Matrix Warri and Prudent Energy Oghara had gone up earlier due to the FX pressures they face from import - they have no access to more affordable NLNG or NNPC LPG. Stockgap received an NLNG vessel during the week and sold from 15.5 to about 15.8 Million during the week, but we expect the price increase this week to 17 Million. The major factor driving local LPG prices in Nigeria is the USD/Naira FX rate which is currently at over 1400 Naira per USD. As long as the Naira continues to fall, we should expect LPG prices to continue to rise at the depot and the retail end.
LPG Retail Prices:
We conducted a Retail price survey and got some interesting figures - prices are just under 12,000 Naira per 12.5kg in Lagos, less than figures seen in December when the USD was 1300 per Naira.
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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