Propane and butane prices around the globe will be higher this month, with low stock levels from key supplier the US meeting rising demand leading up to winter heating season.
State-controlled Saudi Aramco set its propane price for November at the highest since February 2014, and its butane price at the highest since July 2014. Algerian state-owned Sonatrach set its propane price at the highest since January 2014, and its butane price at the highest since February 2014. Argus‘ North Sea Index (ANSI)for propane is at its highest since February 2014, and butane at its highest since March 2014.
The ANSI for propane rose by $20/t from October to $793/t, and the butane index rose by $79/t to $803.5/t. Aramco raised its contract prices (CP) for propane to $870/t from $800/t, and its butane prices to $830/t from $795/t, extending the premium to propane to $40/t from $5/t. Aramco’s propane price was above market expectations, with CP November propane swaps trading at around around $843/t on 29 October.
Sonatrach set its prices (SP) at $820/t for propane, up by $8/t on the month, and at $825/t for butane, up by $83/t. Sonatrach flipped its November pricing to a $5/t discount for propane from a premium of $66/t in October. it sold butane at a premium of $10/t, $30/, and $30/t in July, August, and September respectively, which suggested the anomalous October pricing may have reflected it being temporarily shorter on propane last month