Sonatrach and Saudi Aramco cut OSPs for LPG in July by 1-17%

Reuters Images/Maxim Shemetov

Aramco's July OSP for propane was reduced by $50 to $400 per tonne, while butane was lowered by $65 to $375 per tonne

Reuters, Reuters News

July 6, 2023

PHOTO

MOSCOW - 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 July OSP for propane was reduced by $50 to $400 per tonne, while butane was lowered by $65 to $375 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.

(Editing by Jason Neely)

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