Saudi Arabia’s state oil producer Aramco has raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in November by 1-2% from October due to rising LPG demand, while Algeria’s Sonatrach has reduced OSP for butane by 6% due to increased supply to the Mediterranean region, traders said.

Aramco’s November OSP for propane was increased by $10 to $610 per tonne PRO-OFFCL-SA, while OSP for butane was raised by $5 to $620 per tonne.

Propane and butane are types of LPG with different boiling points.

LPG is mainly used as a fuel for cars, heating and as a feedstock for other petrochemicals.

Sonatrach left unchanged its November OSP for propane at $560 per tonne PRO-OFFCL-DZ, while its OSP for butane declined by $35 to $535 per tonne.

Aramco’s OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region. Sonatrach’s OSPs for LPG are used as benchmarks for the Mediterranean, Black Sea region and Turkey.
Source: Reuters (Editing by David Evans)