Saudi Aramco cuts April propane, butane CPs

State-controlled Saudi firm Saudi Aramco has cut its April propane Contract Price (CP) by $165/t from a month ago to $555/t, following a 4.9pc loss in front-month Ice Brent crude over the same period.

The April butane CP was also set lower at $545/t, down by $195/t on the month, which rendered the propane-butane CP spread at $10/t. The April propane-butane CP swaps differentials were assessed at $15/t on 29 March.

The monthly drops could be attributed to increased supply from the Mideast Gulf region in April after maintenance ended at Saudi Arabia's Yanbu and Ruwais ports, as well as fading seasonal demand from northeast Asia.

The discount offered to term customers for supplies loading from Yanbu was unchanged from March at $15/t.

The April propane CP was slightly above market expectations. The first and second round of April propane CP recommendations from term customers were within a range of $545-550/t, while butane was pegged $5-10/t lower.

April propane CP swaps averaged $590/t during 1-29 March, while its butane equivalent averaged $589/t.

The Argus Middle East Index (AMEI) for propane and butane cargoes loading over 21-30 April was assessed at $522/t and $507/t respectively on 29 March.