Saudi Arabia’s state oil producer Aramco 2222.SE has raised official selling prices (OSPs) for liquefied petroleum gas (LPG) in January by 1.6% compared to December, while Algeria’s Sonatrach has reduced OSP for propane by 1.9% due to rising supply, traders said.

Aramco’s January OSP for propane was increased by $10 to $620 per tonne PRO-OFFCL-SA, while OSP for butane was raised by $10 to $630 per tonne BUT-OFFCL-SA.

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 has cut its January OSP for propane by $10 per tonne to $510 PRO-OFFCL-DZ, while its OSP for butane was stable at $540 per tonne. BUT-OFFCL-DZ.

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 Tomasz Janowski)