Liquefied petroleum Gas (LPG) prices in Saudi Arabia declined during May xxxx as Saudi Aramco lowered their contract offers for propane and butane. While the rise in the export of propane has surged sentiments, LPG prices in Saudi Arabia have declined due to an oversupply situation which offset the high demand. The LPG price drop stemmed from significantly reduced crude oil feedstock costs, enabling manufacturers to offer substantial discounts to the importing nations.
Key Takeaways:
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Saudi Aramco lowered the May xxxx contract prices for propane by USD x/tonne and butane by USD xx/tonne.
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For supply agreements spanning from the Middle East to the Asia-Pacific area, Aramco&#xx;s LPG pricing was regarded as a crucial benchmark.
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Propane exports rose in May xxxx.
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Feedstock crude oil prices reduced the manufacturing costs for LPG.
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Chinese purchasers switching from American cargoes to Middle Eastern supplies due to high tariffs on US imports.
