Saudi Aramco cuts October LPG contract prices on softer crude

28 September 2011 09:36  [Source: ICIS news]

MELBOURNE (ICIS)--Saudi Aramco has reduced its propane and butane contract prices for October shipment following a decline in crude futures, two Asian buyers said on Wednesday.

Saudi Aramco cut its propane selling price by almost 7% from September to $735/tonne (€537/tonne) FOB (free on board). It reduced its butane price by 5.8% from September to $815/tonne FOB. Both prices are for cargoes loading in October.

Benchmark WTI futures closed on 27 September at $84.45/bbl, compared with $85.37/bbl on 26 August, before the producer announced its September liquefied petroleum gas (LPG) contract price.

Saudi Aramco, which is based at Dhahran in Saudi Arabia, is a major LPG supplier to Asia.

LPG, a heating and cooking gas, is also used by olefins producers as a substitute for naphtha.

($1 = €0.73)

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By: Trisha Huang

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