FOB US Gulf Coast Propane Values Reach Highest Level in More than 16 Months

FOB U.S. Gulf Coast full-propane values spiked Monday as the U.S.-Israeli attack on Iran drove up notional netbacks to their highest level in more than 16 months.

Sources did not hear of any deals Monday, with most sources estimating FOB values at more than +20cts/gal because of high netbacks. But sources cautioned that it was difficult to put an exact value on FOB prices because a potential closure of the Strait of Hormuz has made it very difficult to arrange for shipping.

“In theory (FOB values are) 20+ (cts/gal),” a source said, but added the value “is almost impossible to confirm” because of the difficulty of knowing what shipping is available.”

FOB values for the first half and second half of April were each pegged at +20-22cts/gal, after values for H2 March and H1 April were each gauged at +14-16cts/gal in the previous session. Monday’s values were the highest since Oct. 29, 2024.

The FOB assessment represents the price to load an LPG spot cargo in the Gulf Coast in addition to the separate commodity cost assessed by OPIS.

The half-month assessment windows rolled Monday per OPIS methodology.

A structural mishap at the Port of Ras Tanura in Saudi Arabia last week had already led to the cancellation of March LPG cargo acceptances at the port and an estimated sidelining of 74% of Saudi exports, according to analysis firm Vortexa. A possible closure of the Strait of Hormuz would reduce Middle Eastern LPG exports significantly more.

No LPG vessel diversions have been reported in the past seven days, according to Vortexa.

With U.S. NGL export plants operating at high rates of 90%, “I am not sure where these extra cargoes (would) come from,” a source said.

A full-propane FOB deal for loading April 9-11 that was reported Friday was confirmed Monday. The buyer was a European trader, but it was not clear who the seller was.

Notional netbacks for full-propane cargoes to Asia for H1 and H2 April were calculated at 30.75cts/gal and 25.5cts/gal, respectively, after H2 March and H1 April were gauged at 21.75cts/gal and 21.5cts/gal, respectively, in the previous session.

Notional netbacks for full-propane cargoes to Europe for H1 and H2 April were pegged at 13.75cts/gal and 9.5cts/gal, respectively, after H2 March and H1 April were calculated at 16.625ct/gal and 11.375cts/gal, respectively, in the previous session.

Reporting by Ron Nissimov, rnissimov@opisnet.com and Erik Papke, epapke@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com © 2026 Oil Price Information Service, LLC. All rights reserved.