Algerian Sonatrach Cuts April LPG OSPs, Saudi Aramco Holds Proces Steady

Oil producer Saudi Aramco keeps its April official selling prices (OSPs) for liquefied petroleum gas (LPG) unchanged from March, while Algeria's Sonatrach cut its OSPs by 2-7% due to weaker demand in the Mediterranean, traders said on Monday.

Aramco's April OSP for propane was stable at US$615 per metric ton , while butane was SU$605 per ton , traders said. Sonatrach cut its April OSP for propane by US$10 to US$550 a ton and for butane by US$40 to US$545 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.

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.