Aramco raises August propane, butane by $5-10/t

01 August 2007 10:55  [Source: ICIS news]

LONDON (ICIS news)--Saudi Aramco has increased its liquefied petroleum gas (LPG) prices for August loading by $5-10/tonne (€3.66-7.32/tonne) on strong European demand and thinly traded Middle East and Asian markets, a source close to the company said on Wednesday.

Propane pricing was up $5/tonne on July levels at $580/tonne FOB (free on board) Ras Tanura, while butane pricing was increased by $10/tonne to $605/tonne FOB Ras Tanura, according to the source.

Aramco had lowered both butane and propane prices by $17/tonne in July.

“The strength of the market is in the west. Perhaps because of maintenance in Europe, demand is very strong. In the east, however, trading remains thin,” the source said, adding that northwest European pricing would see larger increases. 

Aramco produces 8.22bn cubic feet/day of natural gas, the majority of which is processed at its Ras Tanura refinery facility.

($1 = €0.73)

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Author: Peter Salisbury
+44 20 8652 3214

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