ICIS-LOR Daily Market Talk - Americas

23 March 2005 23:26  [Source: ICIS news]

AMERICAS

 

CRUDE: BRENT - May: $53.25; WTI - May: $54.05

Crude prices plunged Wednesday, continuing the sell-off which started the previous day. The weekly supply statistics from the API and the DoE revealed a much greater build in crude stocks than forecast but also revealed a decline in both gasoline and heating oil inventories. Crude futures on the Nymex have eased close to $3.50/bbl on two sessions.

 

NAPHTHA: Players kept to the sidelines Wednesday as no new deals were heard done in the US naphtha market. N+A naphtha material was still said to be priced at a 5 cents/gal discount to USG unleaded. The unchanged spread to mogas led to notional values at $529-530/tonne DEL.

 

MTBE: Trading activity was confined to talk on differentials for both March and April supplies.  These discussions were suspended as market participants sought to learn more details about the explosion at a large Texas City, Texas refinery.  Late in the afternoon, sources said fixed price discussions showed USG material in the $1.66/gal- USD1.68/gal range making differentials in the + 6.25-8.25 cents/gal range.  NYH figures were quoted in the $1.70/gal to $1.72/gal.  NYMEX gasoline futures contract prices were volatile during the session.  Late in the afternoon, prices for the April contract surged on the news of the Texas City explosion and the contract settled flat at $1.5749/gal.  May firmed but closed off 0.65 cents/gal at $1.5977/gal.  Earlier, the announcement by the Energy Information Agency (EIA) that gasoline stocks declined by 4.m bbl to 217.3m bbl were more than expected by traders.  Once the figures were examined, stocks were still at their highest level since the same week in 1999 and 15.2m bbl higher than one year ago, prices moderated.

 

BENZENE:  Players reported that April benzene spot deals were done Wednesday morning at $3.75/gal DDP, $3.765/gal DDP and $3.77/gal FOB USG. Wednesday morning's spot prices were about 5 cents/gal lower than spot price heard toward the end of Tuesday. An April benzene spot deal was done on the screen at $3.73/gal DDP late Wednesday morning. Another April spot deal was completed on the screen at $3.87/gal FOB USG in late afternoon following news of the fire at a Texas City refinery. Spot prices were assessed at $3.86-3.95/gal FOB USG in late-afternoon.

 

TOLUENE:  Toluene spot prices were talked at $2.20-2.25/gal DDP for April, according to market sources. Market activity slowed down considerably following a fire at a Texas City refinery, as players moved to the sidelines until a better assessment of the situation was known. A deal emerged in late afternoon, however, at $2.265/gal FOB USG for April.

 

XYLENES:  Lower offers were heard on Wednesday morning for mixed xylenes (MX). April spot offers were seen as low as $2.16/gal DDP, with spot bids scarce. Following a fire at a Texas City refinery, spot offers surged to as high as $2.40/gal FOB USG for April, with spot bids notional. In the PX market, players said spot prices were talked on either side of $940/tonne FOB USG for April.

 

 Produced by ICIS-LOR daily editorial department: market.talk@icislor.com
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