EL7.AI
CommoditiesMedium•6 November 2026•
4 min read

European Butane Hits $1,125 a Ton as ARA Hub Imports Fall 34%

Key Facts

1The November butane price in northwestern Europe reached $1,125 a ton, its highest level in 30 years.
2Butane imports to the ARA hub fell to 130,000 tons in October, down 34% from a year earlier.
3The Asian AFEI butane index reached $1,180 a ton on November 3, 2026.
4Asia received 840,000 tons, or 54% of U.S. butane cargoes in October.

The November butane price in northwestern Europe reached $1,125 a ton by early November, its highest level in 30 years, according to a report published by OilPrice. The price leaves the European market facing tight supply as it competes for cargoes with Asian buyers. In Asia, the AFEI butane index reached $1,180 a ton on November 3, exceeding the cited European price. The report says the rerouting of U.S. cargoes toward Asia coincided with a decline in supplies arriving in Europe. Prices are also rising as the seasonal shift to winter gasoline specifications begins, supporting butane demand.

Monthly butane imports to the Amsterdam-Rotterdam-Antwerp hub, known as ARA, fell to 130,000 tons in October. That was down 34% from the same month a year earlier, and the report described the level as the lowest in several years. The decline in imports makes the European market more sensitive to shifts in cargo routes between destinations. Asia received 840,000 tons of U.S. butane cargoes in October, equivalent to 54% of the total. Europe, by contrast, received only 105,000 tons, or about 7%.

The report attributed some of the pressure to disruption in Gulf supplies and Asia's previous reliance on Middle Eastern producers to cover about half its imports. After the crisis, it said, the Gulf states' share of global liquefied petroleum gas exports fell to 11%, while the U.S. share rose to 65%. From April to October, U.S. propane and butane supplies covered as much as 75% of Asia's imports, before their share fell to about 55% in October as deliveries from the UAE, Kuwait, Qatar and Saudi Arabia gradually recovered. The report said, "The U.S. share fell to about 55% in October." The return of some Gulf supplies means the mix of Asian suppliers has begun to change, although U.S. cargoes remain a major part of the market.

U.S. butane exports fell from a record 2.4 million tons in May to 1.55 million tons in October, but remained 12% above their level a year earlier. The U.S. butane price at Mont Belvieu reached $920 a ton in early November, its highest level in 14 years, according to the report. The report estimated that adding about $320 a ton in shipping costs to India would lift the delivered price to $1,240 a ton. The spread between the cost of delivered U.S. butane and the AFEI index was also $50 to $60 a ton. The comparison shows that transport costs do not erase the appeal of U.S. supplies for Asian buyers, but directly factor into their choice of supply sources.

Seasonal use adds another factor to competition among buyers: butane is used in gasoline blending, and demand typically strengthens during the autumn shift to winter gasoline specifications between October and March, according to the report. Europe faces this domestic demand as October data show a sharp drop in imports to the ARA hub, while a larger share of U.S. cargoes went to Asia. In the United States, butane is also used as a gasoline-blending component during winter, according to the U.S. Energy Information Administration. U.S. exports of normal butane averaged nearly 500,000 barrels a day in 2024, up 12% from 2023, and have grown annually since 2006. This context shows how competition for supplies overlaps with seasonal demand in more than one market.

International Energy Agency data highlight the exposure of liquefied petroleum gas trade to shipping disruptions through the Strait of Hormuz. Exports through the strait fell by about 80% in March 2026, from an average of 1.5 million barrels a day in 2025 to 0.3 million barrels a day. About two-thirds of the liquefied petroleum gas consumed in India in 2025 had passed through the strait, underscoring the link between Asian supply security and Gulf routes. U.S. propane exports, meanwhile, hit a record 2.1 million barrels a day in April 2026 and averaged 2 million barrels a day in the first half of the year, up 11% year on year. This reflects the ability of U.S. suppliers to meet some of the demand that could not be supplied through traditional routes.

Looking ahead, the U.S. Energy Information Administration forecast net propane exports to rise 7% in 2026 and 10% in 2027. It also said two projects in the Gulf of Mexico will add a combined 660,000 barrels a day to liquefied petroleum gas export capacity during 2026 and 2027. This increase could expand the United States' ability to supply overseas markets, as October figures showed a clear shift in U.S. cargoes toward Asia at Europe's expense. Market balance will also remain tied to the course of the Gulf supply recovery and shipping through the Strait of Hormuz. The seasonal factor, according to the report, lasts through March, with winter gasoline use continuing to support butane demand.