Algeria’s Sonatrach left unchanged official selling prices (OSPs) for liquefied petroleum gas in July, while Saudi Arabia’s state oil producer Aramco cut OSPs for LPG by 4.2-4.4% due to weaker demand, traders said.

Sonatrach’s July OSP was stable at $445 per metric ton (PRO-OFFCL-DZ) for propane and at $435 per ton (BUT-OFFCL-DZ) butane.

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.

Saudi Aramco cut its July OSP for propane by $25 per ton to $575 (PRO-OFFCL-SA) and for butane by $25 per ton to $545 (BUT-OFFCL-SA).

Aramco’s OSPs for LPG are used as a reference for contracts to supply LPG from the Middle East to the Asia-Pacific region.

Sonatrach’s OSPs are used as benchmarks for the Mediterranean and Black Sea region, including Turkey.
Source: Reuters