Hormuz Crisis Is Rewriting the Global LPG Trade
India Hopes To Take Over Operation Of Venezuelan Oil Fields From PDVSA Jose is an energy and political risks analyst for Jose Parejo Associates.
He worked for 13 years at Venezuela’s PDVSA.
Jose has a degree in… The Strait of Hormuz, the Middle East’s main choke point, is effectively closed asIranian attackson vessels continue, and the ripple effect is tearing through global supply chains.
While crude oil and natural gas disruptions have grabbed headlines, liquefied petroleum gas (LPG) also finds itself at the center of the crisis.
The United States leads the world in LPG exports by awide margin.
However, the Gulf countries remain a critical supply center: Saudi Arabia, the UAE, and Qatar are all major LPG exporters currently cut off by the closure.
The traditional LPG supply chain, which cuts across the Middle East, is challenged by rising US exports and mounting geopolitical turmoil.
But a key question remains: who can keep LPG flowing while the world’s most critical energy bottleneck is under pressure? The strain on the LPG market from the Iran conflict has been visible.
Exports from Saudi Arabia, Qatar, the UAE, and even Iran (whose tankers were recentlyturned backby the US Navy’s blockade) have slowed significantly since the war began.
Before the war, roughly 54 oil, chemical and LPG tankers passed daily through Hormuz.
During the height of the conflict in early March, propane prices from the Texas Gulf Coast rose toalmost 10%, reaching new highs as supply tightened due to the strait’s closure.
By late May, traffic hadplummetedto an average of 11 vessels per day, and by mid-June the cost of propane per gallon was uproughly 25%from pre-war prices in February.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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