Saudi Aramco, Algeria Cut July LPG Prices on Rising Global Supply

Saudi Aramco and Algeria's Sonatrach have cut official selling prices (OSPs) for liquefied petroleum gas (LPG) for July, responding to a surge in global supply that has weighed on the market.

Saudi Aramco lowered its propane OSP by $180 per metric ton to $580, and its butane OSP by $220 to $600 per ton. Algeria's Sonatrach reduced its propane OSP by $57 per ton. The coordinated price cuts highlight the growing abundance of LPG on the international market, driven by increased production from the US and other exporters. This oversupply has pressured prices, prompting major producers to adjust their pricing strategies to remain competitive. For traders, the lower OSPs signal a bearish outlook for LPG in the near term, as supply continues to outpace demand. Live LPG prices and charts on NowPrice show how the market is reacting to these developments.

The price cuts come amid broader shifts in global energy markets. Ukraine's drone campaign against Russian refineries has forced Russia to import gasoline from India, adding to the complexity of global fuel flows. Meanwhile, the US remains a dominant LPG exporter, with its production growth keeping international markets well supplied. The combination of ample supply and geopolitical disruptions is creating a volatile environment for energy commodities. Traders should monitor upcoming inventory data from the US Energy Information Administration and any changes in OPEC+ production policy, as these could further influence LPG prices. The contango structure in the LPG futures market suggests that storage economics may become attractive, potentially absorbing some of the excess supply in the coming months.