Prices crude LPG hold would be purchased by the market
Prices crude LPG hold would be purchased by the market . since different types of buyers driven by different economic incentives. While LP is produced as illustrated by the crude oil, there is clearly a distinct LPG market, fluctuating demand in the spot market The traditional LPG pricing mechanism in use in the Arabian Gulf the world’s primary supplier of LPG, did not factor in this notion of a distinct LPG market. LPG prices were indexed sole to Arab light crude oil and the producing nations were free to adjust ratio of LPG expressed as a percent of cost of the price of Arab light crude oil) while remaining thermal equivalent unrestricted by the pricing mechanism.