Algeria’s Sonatrach and Saudi Arabia’s Aramco reduced July official selling prices (OSPs) for liquefied petroleum gas (LPG) by 1-17% versus June due to weaker demand and ample global supply, traders said.

Aramco’s June OSP for propane was reduced by $50 to $400 per tonne, while butane was lowered by $65 to $735 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 lowered its July OSP for propane by $5 to $400 per tonne and cut its butane OSP by $70 to $335 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 Jason Neely)