Saudi Arabia's state oil producer Saudi Aramco TADAWUL:2222 has cut official selling prices for liquefied petroleum gas by between 24% and 27% in July, while Algeria's Sonatrach lowered the price between 2% and 10% due to higher supply on the global markets, traders said on Wednesday.
Saudi Aramco's July OSPs decreased by $180 per metric ton to $580 a ton (PRO-OFFCL-SA) for propane and by $220 a ton to $600 per ton (BUT-OFFCL-SA) for butane.
Propane and butane are types of LPG with different boiling points. LPG is mainly used as fuel for cars, heating and as a feedstock for other petrochemicals.
Sonatrach decreased its July propane OSP by $57 a ton to $518 (PRO-OFFCL-DZ) and for butane by $10 a ton to $600 (BUT-OFFCL-DZ).
Saudi Aramco's OSPs 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.