Saudi Arabia’s state oil producer Aramco and Algeria’s Sonatrach have cut official selling prices for liquefied petroleum gas in November by 3.2% to 4.0% due to rising global supply and weaker oil prices, traders said.
Saudi Aramco’s November OSP decreased by $20 per metric ton to $475 per ton for propane and by $15 per ton to $460 per ton 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 November OSP for propane by $15 per ton to $455 and left butane at $465 a ton .
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.
(Reporting by Reuters; Editing by Kirsten Donovan)
