Authored by Natalia Katona via OilPrice,
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 global propane/butane trade flows since 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. Yet the broader restoration of Gulf expor
