As discussed in RBN’s latest blog, LPG exports from the Persian Gulf are essentially cut-off due to the war in Iran and international propane benchmarks in Asia and Europe have risen dramatically. Since February 28, The prompt Far East Index (FEI) Propane contract (purple line) has increased 58% or $344.15/MT to settle at $937.05/MT on March 19. During the same time-period the European propane benchmark, Amsterdam Rotterdam Antwerp (ARA) skyrocketed $320.24/MT to $854.93/MT, a 60% increase (orange line). U.S. propane (grey line) has risen 22%, primarily due to increased WTI crude prices. Asia and, to a lesser extent, Europe depend on Persian Gulf exports of propane for use as a petrochemical feedstock and residential heating/cooking primarily. This large portion of global supply off the market has given U.S. propane exporters quite the opportunity to fill the gap but are limited by loading capacity.
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Terminal Fees Close the Spot Asia Propane Arb
The conflict involving Iran has pushed international NGL and LPG prices sharply higher, increasing demand for U.S. exports as global buyers look for replacement supply.
Leave the Door Open – U.S. Propane Storage to Fall in 2026 as Added Dock Space Rebalances Market
The U.S. propane market is in a unique position. Production has continued to grow while domestic demand remains stagnant. The only solution for the market to balance is exports; however, those have been constrained by capacity at the dock. Today, we continue our examination of the propane market.
VLGC Freight Rate to Japan Hits All-Time High
The impact of the war in Iran, and the effective closure of the Strait of Hormuz have certainly impacted crude oil and LNG markets, but the LPG market hasn't gotten away unscathed by a long shot. Longer transit times, both laden and unladen due to increased Asian demand and congestion at the Panama Canal have sent the spot VLGC freight rate from Houston to Chiba, Japan to record highs.
