CP in September, 2026 : 642.5 USD/t (+ 12.5 USD from August)
C3 : USD 625 (+ 5 USD from August)/ C4 : 660 (+ 20 USD from August)
The main factors behind this price increase were rising crude oil prices amid continued instability in the Middle East, as well as ongoing concerns over LPG supply and transportation.
In early August, crude oil prices temporarily stabilized amid expectations of progress in discussions toward the resumption of navigation through the Strait of Hormuz. However, disputes over transit conditions and attacks on vessels subsequently continued, renewing concerns over crude oil supply. As a result, the average WTI crude oil price in August rose to USD 82.5 per barrel, approximately USD 3.3 higher than the July average of USD 79.2 per barrel. Furthermore, concerns over the prolonged instability in the Middle East continued from mid-August onward, resulting in an upward trend in CP futures prices.
Regarding LPG supply from the Middle East, navigation through the Strait of Hormuz continues to face difficulties. In addition, the Panama Canal has decided to reduce the number of transit slots in order to conserve water resources due to reduced rainfall associated with factors such as El Niño. This has raised concerns about longer vessel waiting times and higher transportation costs.
As a result, the combination of rising crude oil prices, concerns over LPG supply, and transportation risks became the main factors behind the increase in the September CP.
Looking ahead, uncertainty surrounding the situation between the United States and Iran remains. Therefore, LPG prices may continue to fluctuate depending on developments in crude oil prices and the situation in the Middle East. We will continue to closely monitor market conditions.
(Reference: ENEOS Weekly Report, Astomos Energy Monthly Report, RIM)
