Weekly Mont Belvieu Propane-Butane Price Review May 10th 2024

By Godwin Okoduwa ــ Last Update 12 May 2024

Weekly Mont Belvieu Propane-Butane Price Review: May 10th, 2024

Here's a recap of the LPG price trends for the week, highlighting the average prices for Propane and Butane each day:

06/05/2024: Propane $352.0 / Butane $368.1

07/05/2024: Propane $349.6 / Butane $363.7

08/05/2024: Propane $358.7 / Butane $368.1

09/05/2024: Propane $355.1 / Butane $369.3

10/05/2024: Propane $354.3 / Butane $366.4

Butane Prices reach a new low in 2024 and the lowest since October 2023:

Butane prices dropped further finishing at an average price of 366.4 USD/MT, 5.9% lower than the previous week's average of 370.2 USD/MT. Propane also finished lower; finishing at an average price of 354.3, 5.1% lower than the previous week average of 359.5 USD/MT. We expect the trend to continue deep into summer.

Crude Oil Prices attempt the bullish trend:

Crude oil prices closed higher last week, with Brent crude finishing at 84.38 USD per barrel. Factors affecting prices include diminishing US Crude inventories and news of strong Chinese imports. The renewed tension in the Middle East is also a factor, which increases supply risk; this is an important factor to monitor in the coming weeks.

Nigeria LPG depot prices rebound in the west.

LPG Depot prices rebounded to higher grounds, touching the 17 Million Naira - mark again mainly in the west; the rebound is due to the Naira - USD Exchange rate which continues to go higher by the day. Last Friday, the parallel market was around N1480 per USD and N1440 on the CBN website. However, prices in the South-South stayed in the 16.3 million region, meaning that the market is yet to regain from the recent losses experienced when prices went bearish. We expect another week of cautious trading by marketers.

Last week we didn't expect the Exchange rate to go beyond 1400 /USD, we will be watching the rates the week as it approach the 1500- mark.

LPG Retail Prices:

We expect that retail prices would begin to respond to lower depot prices and sell lower than 14500 in Lagos.

For further inquiries or in-depth analysis of these market developments, please do not hesitate to reach out to us. Our dedicated team is committed to providing the insights and guidance necessary for navigating the dynamic landscape of the LPG market.