(Reuters) – Saudi Aramco and Algeria’s Sonatrach have cut March’s official selling prices (OSPs) for liquefied petroleum gas (LPG) by 0.9-3.2% from the previous month because of lower oil prices and weak global LPG demand, traders said on Monday.
Aramco’s March OSP for propane was cut by $20 to $615 a metric ton while butane prices were dropped by $20 to $605 a ton, the traders said.
Propane and butane are types of LPG with different boiling points.
LPG is used mainly as fuel for cars and heating as well as a feedstock for other petrochemicals.
Sonatrach cut its March OSP for propane by $5 to $560 a ton and for butane by $15 to $585 a ton, traders said.
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)
