International Oil Prices Remain Strong
21 September 2023
Huatai Futures Liquefied Petroleum Gas Daily 20230919: International oil prices remain strong, with strong cost support
South China,In the first half of October 2023, the landed price of frozen goods in South China was 685 US dollars per ton for propane and 700 US dollars per ton for butane. The cost of propane delivery in RMB is 5410 yuan/ton, while the cost of butane delivery is 5528 yuan/ton.
East China,In the first half of October 2023, the CIF price of frozen goods in East China was 695 US dollars per ton for propane and 710 US dollars per ton for butane. The cost of propane delivery in RMB is 5489 yuan/ton, while the cost of butane delivery is 5607 yuan/ton.
According to Iran's Tasnim news agency, on the 18th local time, Iranian Foreign Ministry spokesperson Kanani stated that some of Iran's overseas assets are expected to be unfrozen and transferred to Iran's accounts in friendly countries on the same day. At the same time, the "prisoner exchange" between the United States and Iran will also proceed as scheduled. The United States and Iran will release five individuals from each other's custody.
On 17th September, CNOOC announced that six new oilfields of Enping 15-1 Oilfield Group in the the Pearl River Mouth Basin were fully completed and put into operation, forming a modern offshore oilfield group integrating high production, intelligence, low-carbon and other characteristics, with an annual crude oil output of more than 2.5 million tons.
Market analysis:
Affected by the international oil price correction, the main contract price of LPG fell first and then rose slightly to close negative yesterday. In terms of spot prices, the East China liquefied gas market in Jiangsu rose yesterday, while prices in Zhejiang and Shanghai fell. Traffic restrictions in some regions affected the circulation of goods, and it is expected that the short-term market will still be dominated by high volatility. LPG's own fundamental benefits are limited, and it still has an upward drive in the short term, but it is not advisable to excessively chase up.
Strategy:
Unilateral neutral leaning towards high, bargain hunting towards PG2310 contracts, not overly bullish
Risk:
A significant drop in oil prices; The combustion demand is lower than expected; The demand for chemical equipment is lower than expected; Significant increase in supply in the Middle East and North America
South China,In the first half of October 2023, the landed price of frozen goods in South China was 685 US dollars per ton for propane and 700 US dollars per ton for butane. The cost of propane delivery in RMB is 5410 yuan/ton, while the cost of butane delivery is 5528 yuan/ton.
East China,In the first half of October 2023, the CIF price of frozen goods in East China was 695 US dollars per ton for propane and 710 US dollars per ton for butane. The cost of propane delivery in RMB is 5489 yuan/ton, while the cost of butane delivery is 5607 yuan/ton.
According to Iran's Tasnim news agency, on the 18th local time, Iranian Foreign Ministry spokesperson Kanani stated that some of Iran's overseas assets are expected to be unfrozen and transferred to Iran's accounts in friendly countries on the same day. At the same time, the "prisoner exchange" between the United States and Iran will also proceed as scheduled. The United States and Iran will release five individuals from each other's custody.
On 17th September, CNOOC announced that six new oilfields of Enping 15-1 Oilfield Group in the the Pearl River Mouth Basin were fully completed and put into operation, forming a modern offshore oilfield group integrating high production, intelligence, low-carbon and other characteristics, with an annual crude oil output of more than 2.5 million tons.
Market analysis:
Affected by the international oil price correction, the main contract price of LPG fell first and then rose slightly to close negative yesterday. In terms of spot prices, the East China liquefied gas market in Jiangsu rose yesterday, while prices in Zhejiang and Shanghai fell. Traffic restrictions in some regions affected the circulation of goods, and it is expected that the short-term market will still be dominated by high volatility. LPG's own fundamental benefits are limited, and it still has an upward drive in the short term, but it is not advisable to excessively chase up.
Strategy:
Unilateral neutral leaning towards high, bargain hunting towards PG2310 contracts, not overly bullish
Risk:
A significant drop in oil prices; The combustion demand is lower than expected; The demand for chemical equipment is lower than expected; Significant increase in supply in the Middle East and North America