Gas Market Report.

(From Lloyds List)

NORTH WEST EUROPE: The market is still in a state of flux over where the prices are going for large propane cargoes with numbers oscillating in the $560-$580 range over the last week. Falls in crude and lack of ullage in NWE are all combining to maintain prices in the lower end of this range. But, with August trading showing signs of easing buyers and sellers are concentrating on end August cargoes that may be delivered against September contracts and this may help to drag the prices back up towards September values in the $580s.

Butane has on sentiment only, been following the same track as propane and is now easing off from the high $580s into the mid $570s but with lack of trades then this may be quiet different when a buyer or seller comes to the market.

The coaster propane market is once again very quiet. There is no buying interest shown this week and product availability remains limited. The FOB level is talked around the $560 while the CIF level is talked around the $600.

The coaster butane market has remained fairly active over the last working week with several refinery cargoes becoming available for spot sale. With blending demand still limited petchems have yet again been the main outlet for these cargoes. CIF deals have been reported within a $550-$570 range depending upon product quality. With freight levels easing downwards the FOB'CIF differential has now narrowed. FOB numbers are currently talked at around the $520-$535 level with one deal recently concluded for a small cargo FOB North France at the low $530s.

MEDITERRANEAN: Refrigerated cargoes: Nothing special to report. Market continuing to be quiet with some propane demands emerging for South France basis mid to end September arrivals. No firm discussions involved so far. One possible demand for 30 kt split arrival Turkey first week of September has not yet been covered.

Coaster cargoes: The coaster market remains very thin and has been limited also by public holidays in all Mediterranean Catholic countries. There is still no spot propane demand and no transaction reported. However FOB'FCA prices were fluctuating higher and lower in line with CIF ARA levels to finally finish assessed as last week in the mid'high $550s. A couple of mixed coasters heard done for prompt delivery in Turkey and Italy at undisclosed levels.