- June CP Swap valued $59/mt lower than May term
CPs- June-July, July-Aug CP propane swap backwardation
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The June front-month Saudi CP swap was valued at
$791/mt-$750/mt on May 12, down $19/mt- $25/mt and $59/mt- $85/mt lower than the
May term contract prices. The June-July CP propane swaps backwardation
decreased $9/mt- $15/mt to $4/mt- $15/mt. July-August backwardation fell
$3/mt-$18/mt to $6.50/mt-$10.75/mt. This is due to weak demand
sentiment. FOB Middle East differentials were valued as
parity. Market sources indicated that cash differentials would be in
negative territory because of ample supply, even though no new deals were
made. A trader stated that buyers had suggested a double-digit discount on
H2 June cargoes coming out of the Middle East. On May 12, the key VLGC
Persian Gulf-Japan freight rate was $70.50/mt-$80.75/mt, which was
$3.50/mt-$15.75/mt higher...