LPG in World Markets: Far East supply to tighten on US delays, Saudi cuts

LPG in World Markets March 2021 Asian and US LPG prices have been trending higher since mid-February on expectations of rising demand and potential supply tightness in March. Supply in the Far East is expected to be affected by weather-related delays in US exports last month and possible cancellations of March term cargoes by Saudi Aramco.  Liquidity in the Far East spot market has remained thin following the Chinese New Year Holiday through early-March due to wide bid-offer spreads. More deals are expected in March with expectations that buyers would return to secure propane cargoes. But interest for mixed cargoes is likely to remain weak due to depressed demand for butane. Reduced demand for butane is mainly due to lower spot buying interest from India in recent months amid higher LPG prices and lower allocation of petroleum subsidy (LPG and kerosene) in India’s 2021-22 budget, which has been cut by more than half from last year. To read the full article, click here.