Saudi Aramco sets Aug propane CP at $660/mt, butane at $655/mt

Saudi Aramco set its August propane term contract price at $660/mt, up $40/mt from July, and its butane CP at $655/mt, up $35/mt, the company said July 29.

This is the third straight monthly increase in the CPs and also the highest so far this year, S&P Global Platts data showed.

The CPs were also set above traders' expectations.

Term lifters had recommended the term CPs for August at an average of $635/mt for propane and $630/mt for butane, with the lowest around $620/mt and highest at $660/mt, with butane averaging $5/mt below that.

The August CP propane swap closed July 28 at $645/mt, with butane $2/mt below that. The August CP propane swap was notionally indicated July 29 at $648/mt, and butane indicated $2/mt below that, according to brokers.

Aramco had set the August 2020 propane CP at $365/mt and butane CP at $345/mt, Platts data showed.

Aramco's CPs -- which set the price for propane and butane lifted from the Saudi Arabian ports of Yanbu, Ras Tanura and Ju'aymah under term supply contracts -- are closely watched by the market as they tend to set a base for pricing in most markets East of Suez.