Butane’s Perfect Storm Sends Prices to Decade Highs
Oil Crashes 9% as Trump and Vance Blame Iran War for Midterm Rout Europe's declining natural gas consumption… Natalia Katona is a freelance commodity analyst, based in the United Arab Emirates.
Butane prices are surging across the world.
Northwest European November butane prices have reached $1,125/t by early November, their highest level in 30 years, having exceeded even the peaks following Russia’s invasion of Ukraine.
In Asia, the AFEI butane index stood at $1,180/t on November 3.
US butane Belvieu prices have climbed to a 14-year high $920/t.
This surge in prices reflects several overlapping trends, with the most significant being a reorientation of globalpropane/butane trade flowssince the US-Iran war kicked off in March.
Before the conflict, the US supplied roughly 45–50% of global LPG exports and the Middle East another 30–35%.
After the beginning of the Middle Eastern crisis, the Gulf countries’ share subsequently collapsed to 11%, while the US substituted much of this shortfall and its share reached 65%.
Asia has absorbed much of that replacement supply.
Middle Eastern producers previously covered around half of Asia’s imports, offering relatively short voyages and cargoes suited to local requirements.
In April-October, the US propane and butane supplied as much as 75% of Asian imports, drawing volumes away from other destinations, including Europe.
That share eased to around 55% in October as deliveries from the UAE, Kuwait, Qatar and Saudi Arabia gradually recovered.
| 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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