Saudi Aramco and Algeria’s Sonatrach have cut May’s official selling prices for liquefied petroleum gas by 0.8-10.9% from the previous month due to rising global supply, traders said on Monday.

Aramco’s May OSP for propane was cut by $5 to $610 a metric ton (PRO-OFFCL-SA) while butane prices were dropped by $15 to $590 a ton (BUT-OFFCL-SA), the traders said.

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

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

Sonatrach cut its May OSP for propane by $60 to $490 a ton (PRO-OFFCL-DZ) and for butane by $55 to $490 a ton (BUT-OFFCL-DZ), traders said.

Aramco’s OSPs are used as a reference for contracts to supply LPG from the Middle East to the Asia-Pacific region.

Sonatrach’s OSPs are used as benchmarks for the Mediterranean and Black Sea region, including Turkey.
Source: Reuters