CP in May is USD 340.0, which is increased 105.0 USD from April.
C3 : USD 340.0/ C4 : USD 340.0
The crude oil market hit the lowest record in April. OPEC Plus, a mixed organization of OPEC and some other oil-producing countries, reached an agreement of reducing amount by 970mbbl/day during May and June. However, the market forecasts the demand is declining more than reduced amount of supply, so the price decreased. Due to this situation, investors were driven to sell and the price hit minus for the first time in history in the futures market of WTI, on 20th of April.
On the other hand, in the LPG market, it is estimated that Saudi will cancel or delay the cargo of May, so the price increased. In India, LPG consumption for household usage increased because of locked down policy, it also induced people to stock up more gas bottles. In China, some companies has resumed the operation, and PDH (Propane Dehydrate) demands increased. These factors also support the price, and CP increased 105 USD than the previous month.
*Last month, we received several questions about correlation between change rate of CP price and that of LPG unit price.
CP price is kind of purchasing cost of LPG. LPG unit price includes not only CP, but also other costs such as shipment fee, transportation fee, etc. So change rate of CP cannot be same as that of LPG unit price. In other words, LPG unit price does not decrease by 50% only because CP price decrease by 50%, as well as LPG unit price does not become double only because CP price become double.