Riyadh - Mubasher: Al Rajhi Capital is expecting natural gas liquids (NGLs) prices to decline in September on weak demand during the summer season due to lower heating demand, according to a recent report.
Saudi Aramco increased natural gas liquids (NGLs) prices for August, after a 24% increase in US Propane price in July, Aramco increased Propane price for August by $75/t, increasing by around 22% month-on-month to $420/t, marking its first increase since February 2017 and higher than our as well as market expectations, Al Rajhi noted.
Butane price also rose to $460/t, up by $95/t, increasing by around 26% month-on-month, the research firm said in its Saudi petrochemicals monthly report.
Meanwhile, Naphtha snapped its 5-month downward journey, posting a monthly gain of nearly 13% in July, driven by higher oil prices, rising by 10 month-on-month.
Higher Propane price in August and relatively stable Naphtha price so far in August have pushed Propane to Naphtha discount lower at 10% versus 26% in July, eroding Propane’s competitive advantage over Naphtha as a feedstock. While the sharp increase in NGL price for August could increase feedstock costs of APCC and Yansab.
