05 June 2007 11:43 [Source: ICIS news]
LONDON (ICIS news)--European naphtha prices showed signs of recovering on Tuesday after a $24/tonne (€18/tonne) tumble in the previous week, traders said.
Buying and selling indications on Tuesday morning were around $669-674/tonne CIF (cost, insurance and freight) NWE (northwest ?xml:namespace>
The lowest bid heard in the previous week was at $656/tonne CIF NWE. The slump was partly driven by a lack of arbitrage opportunities in the gasoline market.
A number of gasoline and naphtha traders expected the
However, with a number of US refineries returning from maintenance, supply concerns eased, and this closed all arbitrage hope.
The lack of a coherent naphtha arbitrage window from
During late May, market sources said this had re-opened as European naphtha values dropped. However, it was opening and closing on very short notice, according to a Norwegian-based naphtha trader.
“It was very difficult to work with the arb to
One London-based naphtha trader said that when it opened, some cargoes had been booked to
Although the market was not moving in one clear direction, which would be driven by a gasoline arbitrage window or exporting naphtha to
One trader commented that the market needed to move in a clear direction.
Market prices must fall to allow material to move to
($1 = €0.74)
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