Saudi Aramco cuts LPG prices for September as crude oil falls

Saudi Aramco, the largest supplier of liquefied petroleum gas to Asia, cut prices of cargoes loading in September from August after global crude oil benchmarks fell.  The Dhahran, Saudi Arabia-based company reduced the price of propane cargoes by $60, or 7 percent, to $800 a metric ton, said a company official who asked not to be identified. Aramco lowered the price of butane by $50, or 5.6 percent, to $840 a ton.



Crude oil futures on the New York Mercantile Exchange reached a record $147.27 a barrel on July 11, and since then have dropped more than 19 percent.



Aramco sells LPG under one-year contracts and as individual cargoes for immediate delivery. The cargoes are sold free-on- board, requiring the buyers to pay for shipping costs.



LPG, a by-product of oil refining and crude oil and natural gas output, is used for heating, cooking and as a motor fuel. LPG is also used as an alternative to naphtha for processing into petrochemicals.

Source: www.bloomberg.com