Saudi Arabia’s state-owned Saudi Aramco has set its August contract price (CP) for butane and propane by $5/ton from July CP to $345/ton and $365/ton respectively. Aramco will also give a bigger discount for term customers loading from Yanbu from $5/ton in July to $6/ton for August. The market’s response to higher August propane CP was mixed, as August propane CP swaps were trading in a wide range of $369-389/ton a week before Aramco announced the August CP.
Middle Eastern producers, including Aramco, are expected to have raised crude and LPG output after ending their voluntary crude oil production curbs that exceeded the requirements under the OPEC+ pact. However, limited spot demand and high inventories in India and South China may cause additional supplies struggling to find outlets.
