Saudi Aramco raises October 2007 LPG prices to a record|
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SAUDI ARABIA. Saudi Aramco, the world's largest state oil company, boosted prices of liquefied petroleum gas to a record in October in line with higher crude oil costs as demand increased from China and Japan.
The Dhahran, Saudi Arabia-based company increased propane prices sharply for cargoes loading in October to US$640 a metric ton from US$560 a ton in September and raised butane prices to US$665 a ton from US$580 a ton, said a company official, asking not to be identified because of company rules.
Crude oil in New York touched US$83.90 a barrel on 20 September, the highest since futures started in 1983.
Japanese and Chinese importers are seeking additional LPG cargoes to build up inventories of the fuel partly used for heating before the Northern Hemisphere Winter. Inventories in the US are meanwhile 15% lower than last year, according to data from the US Department of Energy.
"Prices are primarily up because of record crude'' prices and higher demand from chemicals makers, said Ravi Narayanaswamy, an analyst at Purvin & Gertz. "Heating demand is the other factor to be considered.''
Aramco sells its LPG under one-year contracts and individual cargoes for immediate delivery. LPG, produced by refining crude oil and as a by-product of natural gas output, is used for heating, cooking and transportation, and is also processed into petrochemicals.


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