Saudi Aramco and Algeria’s Sonatrach Slash LPG Prices by Up to 10%

Saudi Aramco and Algeria’s Sonatrach Slash LPG Prices by Up to 10%

In a significant market move, Saudi Arabia’s state oil producer Aramco and Algeria’s Sonatrach have cut official selling prices (OSPs) for liquefied petroleum gas in August by 4.6-10.1% due to rising global supply and weakening demand, traders reported today.

Saudi Aramco reduced its August OSP for propane by $55 per ton to $520 and butane by the same amount to $490 per ton. Meanwhile, Sonatrach kept its propane OSP stable at $445 per metric ton but cut butane prices by $20 per ton to $415.

The price cuts reflect current market dynamics where LPG supply has increased while demand has softened globally. Aramco’s OSPs serve as reference prices for LPG contracts from the Middle East to Asia-Pacific, while Sonatrach’s prices benchmark the Mediterranean and Black Sea regions, including Turkey.

Source: Business Recorder