Sonatrach August SPS Hikes Reflect Crude-Driven Price Surge
The Sonatrach Selling Price Schedule (SPS) for August 2026 LPG contract prices has been announced, showing month-on-month increases of $100/t and $90/t respectively for propane and butane. However, this rise is largely a mechanical product of crude oil prices rising sharply in the period between Sonatrach's July and August posting windows.
The North Sea Dated crude benchmark rose by approximately $159/t between the two posting periods, directly translating into higher SPS postings regardless of what was happening in the physical LPG market. This highlights the importance of monitoring crude oil price trends for buyers operating under crude-linked contract structures.
The US-Iran conflict played a significant role in driving up crude prices and subsequently the August SPS. The geopolitical risk premium surrounding the Strait of Hormuz has historically proven to be highly disruptive to global energy pricing.