Saudi Arabia and Algeria have officially cut selling prices for liquefied petroleum gas (LPG) for the month of July amid increased global market supply. Saudi Aramco, Saudi Arabia’s national oil company, has lowered its official selling prices (OSPs) for a metric ton of propane by $180 to $580 per ton and by $220 to $600 per ton for butane while Sonatrach, Algeria’s state-owned oil producer, has lowered July OSPs for propane by $57/ton to $518 and and for butane by $10/ton to $600, according to Reuters reporting on Wednesday.
Aramco serves as the primary reference point for LPG supply contracts for the Middle East and Asia-Pacific regions while Sonatrach OSPs are used as the benchmark for the Black Sea and Mediterranean region, including Turkey.
The generous cuts, particularly by Saudi Aramco, are already providing relief for consumers in related markets, with Pakistan’s OGRA cutting the price of an 11.8kg LPG cylinder by over 21% for the month of July.
Meanwhile, European natural gas prices are surging again after Iran unexpectedly boycotted scheduled peace talks with U.S. envoys in Doha, shattering hopes for a swift diplomatic resolution to the Middle East conflict.
The benchmark ICE Dutch TTF contract jumped to roughly €43.80 per megawatt-hour, its highest mark in over two weeks while British equivalent gas contracts followed the European upward trend, spiking to a two-week peak of 104.8 pence per therm.
Iran has officially ruled out direct meetings with senior U.S. envoys, choosing to rely exclusively on mediators like Qatar and Pakistan. This came after Tehran suspended discussions earlier in the month in protest of Israeli military operations in Lebanon, followed by a walkout at the summit in Switzerland.
Ongoing disagreements over the future of the ceasefire, tensions concerning the Strait of Hormuz, and disputes over Iran’s nuclear program continue to complicate efforts to reach a lasting agreement.
By Alex Kimani for Oilprice.com
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