CP in August, 2026 : 630 USD/t (+ 40 USD from July)
C3 : USD 620 (+ 40 USD from July)/ C4 : 640 (+ 40 USD from July)
Saudi Aramco’s August 2026 Contract Price (CP) was finalized at an increase of USD 40/MT for both propane and butane compared to the previous month.
The main reason for this increase was heightened concerns over supply disruptions caused by escalating geopolitical tensions in the Middle East. During mid-July, the suspension of ceasefire negotiations between the United States and Iran, along with rising geopolitical risks surrounding the Strait of Hormuz and the Red Sea, increased concerns about the stable supply and transportation of Middle Eastern LPG. As a result, WTI crude oil prices temporarily rose to nearly USD 90 per barrel, leading to increases in LPG spot prices and CP futures. In addition, difficulties in securing vessels and persistently high freight rates further supported the upward movement in market prices.
Toward the end of the month, market sentiment improved as progress was made toward a ceasefire between the United States and Iran, allowing crude oil prices and CP futures to stabilize. However, concerns over logistics and supply conditions in the Middle East remain, resulting in the August CP being finalized at USD 40/MT higher than the previous month.
Looking ahead, uncertainty surrounding the situation between the United States and Iran remains. As such, LPG prices may continue to fluctuate depending on developments in crude oil prices and geopolitical conditions in the Middle East. We will continue to closely monitor market developments.
(Reference: Eneos Weekly Report, Astomos Energy Monthly Report, RIM)
Please note that the above outlook represents our view and does not guarantee future CP movements.
