Friday, August 21, 2015
At the end of July, a decline in global oil prices pushed diesel below the cost of unleaded gasoline for the first time in 14 years as supplies worldwide outstripped demand, bringing down wholesale costs. This comes as crude oil dipped below $50 (U.S.) per barrel several weeks ago, putting it at less than half of its level last summer. This situation was driven by record production in Saudi Arabia, which opened two new oil refineries this year, as well as slowing growth in China.
With LPG prices still dropping week by week, the large propane and butane markets in Northwest Europe have been reasonably active. Four large propane cargoes from the U.S. are expected to arrive later this month for consumption by petrochemical manufacturers. Propane prices for large, fully refrigerated cargoes are at $287 per tonne cif Amsterdam/Rotterdam/Antwerp (ARA), having weakened by $58 per tonne since the beginning of this month. And butane prices for large, fully refrigerated cargoes now stand at $281 per tonne cif ARA, having softened by $77 per tonne since the start of August.
The coaster markets have generally been quiet during the end of July and going into August, but there is still some butane demand for gasoline blending and cracking. The latest indication of propane swap deals are September $289-$293 per tonne and October $297-$301 per tonne, cif Northwest Europe. North Sea prices for August are $293.50 per tonne fob North Sea terminals for propane and $240 per tonne fob North Sea terminals for butane. Both products have weakened with losses of $38 per tonne and $159 per tonne for propane and butane, respectively.
In the Mediterranean, both the propane and butane markets are lackluster, with activity remaining muted for both grades of LPG. Prices for large, fully refrigerated cargoes of propane are now $342 per tonne cif Lavera, south of
France, and $338 per tonne for butane cif Lavera. Both products have dropped in price since the beginning of this month, with propane falling by $13 per tonne and butane by $150 per tonne.
Sonatrach, the Algerian national oil company, has posted new contract prices for August at $295 per tonne fob Bethouia and Skikda for propane and at $300 per tonne fob Bethouia for butane. Both LPGs have softened since the
beginning of August. Saudi Aramco has negotiated new contract prices for August at $365 per tonne fob Middle Eastern (M.E.) terminals for propane and at $400 per tonne fob M.E. terminals for butane. The closure of Samir’s 200,000-bbld Mohammedia refinery for around 10 days has caused temporary product supply problems in the area. In the Far East there is a glut of propane availability due to production problems at Chinese PDH plants and little ullage in China.
With LPG prices still dropping week by week, the large propane and butane markets in Northwest Europe have been reasonably active. Four large propane cargoes from the U.S. are expected to arrive later this month for consumption by petrochemical manufacturers. Propane prices for large, fully refrigerated cargoes are at $287 per tonne cif Amsterdam/Rotterdam/Antwerp (ARA), having weakened by $58 per tonne since the beginning of this month. And butane prices for large, fully refrigerated cargoes now stand at $281 per tonne cif ARA, having softened by $77 per tonne since the start of August.
The coaster markets have generally been quiet during the end of July and going into August, but there is still some butane demand for gasoline blending and cracking. The latest indication of propane swap deals are September $289-$293 per tonne and October $297-$301 per tonne, cif Northwest Europe. North Sea prices for August are $293.50 per tonne fob North Sea terminals for propane and $240 per tonne fob North Sea terminals for butane. Both products have weakened with losses of $38 per tonne and $159 per tonne for propane and butane, respectively.
In the Mediterranean, both the propane and butane markets are lackluster, with activity remaining muted for both grades of LPG. Prices for large, fully refrigerated cargoes of propane are now $342 per tonne cif Lavera, south of
France, and $338 per tonne for butane cif Lavera. Both products have dropped in price since the beginning of this month, with propane falling by $13 per tonne and butane by $150 per tonne.
Sonatrach, the Algerian national oil company, has posted new contract prices for August at $295 per tonne fob Bethouia and Skikda for propane and at $300 per tonne fob Bethouia for butane. Both LPGs have softened since the
beginning of August. Saudi Aramco has negotiated new contract prices for August at $365 per tonne fob Middle Eastern (M.E.) terminals for propane and at $400 per tonne fob M.E. terminals for butane. The closure of Samir’s 200,000-bbld Mohammedia refinery for around 10 days has caused temporary product supply problems in the area. In the Far East there is a glut of propane availability due to production problems at Chinese PDH plants and little ullage in China.
