SPECIAL REPORT: Global LPG markets react to high oil prices

High global oil prices, regional supply disruptions, project delays, regional demand increases, and slowing economies in many regions have all affected global LPG markets and trade.LPG production has been rising in nearly every region of the world. In 2007, global supply was about 229 million tonnes (7.3 million b/d), up 2.4% from 2006. This increase compares to an average supply growth of about 2.0%/year 2000-06. LPG production and exports have ramped up, associated with higher crude oil and LNG production rates. Because the LPG is a byproduct of oil and gas production, LPG production is unlikely to be reduced despite a surge in supply and a probable reduction in LPG prices relative to c...

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