Gas Market Report.

(From Lloyds List)

NORTHWEST EUROPE: Large propane values have succumbed to falling crude and a lack of winter demand and is now perceived to be in the low'mid $470s with further falls expected by most players. With no demand until early November at the earliest the only recovery could come from a sustained rise in crude.

Butane numbers are also showing signs of falling and most players would put them around the $480 level. With no demand then this level could come under pressure in the near future.

The propane coaster market is again quiet this week. Very little discussion has been heard due to a lack of buying interest and crude'naphtha price volatility, even though product is available ex-terminal. The fob level is talked in the $470-475 range while the cif price is though to be at the $495-500 level.

Activity on coaster butane has diminished over the last few days. This is due to both limited availabilities and lower naphtha values which has reduced the price levels which petchems will now pay for butane as feedastock. Fob numbers are currently talked in a $480 – $490 range, with one deal reported earlier this week fob North Germany at the $490 level.

Workable cif prices are somewhere around $500-510, but demand (particularly from the gasoline blending sector) remains fairly constrained.

MEDITERRANEAN: Refrigerated cargo: Trading activity has been a bit more buoyant with a 43 kt split cargo from WCA rumoured sold into South France for arrival first 10 days November. No more details. Otherwise some split and propane demand is still seen uncovered in November basis Spanish Med discharge.