MOSCOW - Saudi Arabia's state oil producer Aramco and Algeria's Sonatrach lowered March official selling prices (OSPs) for propane by 9-11% compared to February amid weaker demand and rising global supply of liquefied petroleum gas (LPG), traders said.

Aramco's OSP for propane fell by $70 to $720 per tonne in March , while the OSP for butane went down by $50 to $740 per tonne.

Sonatrach's OSP for propane eased by $80 to $640 per tonne , but the OSP for butane went up by $50 to $690 per tonne .

Aramco's OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region. Sonatrach's OSPs for LPG are used as benchmarks for the Mediterranean, Black Sea region and Turkey.

(Reporting by Reuters Editing by Mark Potter)