Summary
The LPG market was relatively uneventful in December, with more of the same in many markets. Going into the festive period, there is a sense of normality in the markets compared to the supply tightness concerns from Panama Canal logistical issues last year, and the ensuing volatility spikes that followed. However, key themes have emerged, namely the weakness in Asian propane (C3 FEI), where milder weather and ongoing weak petrochemical demand have limited its upside. Combining this with the confirmation of OPEC+ cuts, this has further pressured the FEI/CP, with the Jan’25 differential falling below -$20/mt. Meanwhile, the East/West (C3 FEI vs C3 NWE) has fallen into a deeper contango, with the Q1/Q2’25 at a historical low.
