International oil prices rise due to the surge in demand for heating oil affected by the US cold wave
Exchange rate also rose after 9 months amid strong dollar and conflict between the US and China
[지앤이타임즈] International LPG prices rose for the 9th straight month, with propane and butane rising an average of $15.
As international oil prices and the exchange rate rose, the domestic LPG price in April increased by about 20 won per kg.
In March, the international LPG price announced by Saudi Aramco rose by $20 per ton for propane to $625 per ton compared to the previous year, while Bhutan rose by $10 per ton to $595.
In June of last year, the average of propane and butane rose from $340 per ton for nine consecutive months, an increase of $270.
As such, it is analyzed that the rise in international LPG prices was due to the continued rise in international oil prices due to a cold wave in major consumer countries in February and political unrest in the Middle East.
In February, international oil prices began on an uptrend as demand for heating oil increased due to the recommendation of the Organization of Petroleum Exporting Countries to maintain production cuts and the cold wave invasion in the northeastern United States.
Meanwhile, the situation in the Middle East continued to rise as the situation in the Middle East became unstable, such as supply disruptions caused by the strike at Hariga Port in Libya, drone attacks by Yemen Huti rebels against Saudi Arabia, and rocket attacks at Erbil Airport in Iraq.
Moreover, the demand for heating oil surged due to a cold wave in Texas, and the trend was maintained on the rise due to disruptions in crude oil production and a decrease in crude oil production.
The average international oil price in February was $60.89 per barrel based on Dubai oil, rising by $6.08 compared to the previous year, continuing the upward trend.
The exchange rate, which had been declining for eight consecutive months, turned to an increase in February.
This is because the won-dollar exchange rate has turned upward as sentiment to avoid risky assets amid the strong dollar trend.
The February exchange rate was influenced by the rise in the dollar index and US Treasury yields, driven by expectations for an economic recovery in the US and the strong dollar against the euro.
Risks such as conflict between the US and China also triggered a strong dollar.
The average monthly won-dollar exchange rate in February was 1.111.83 won per dollar, up 16.2 won from the previous month.
In April, reflecting international LPG prices and exchange rates, domestic LPG prices increased by about 20 won per kg.
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