16 July 2007 14:11 [Source: ICIS news]
LONDON (ICIS news)--The Europe naphtha crack spread has turned negative for the first time this year due to a weak market and high crude values, traders said on Monday morning.
Traders quoted an August crack spread at minus $0.40/bbl to minus $0.20/bbl. Brent August futures reached $78.40/bbl in early trading, just marginally short of the all-time record high seen last year.
European open spec naphtha was assessed around $695/tonne CIF (cost, insurance and freight) NWE (northwest Europe) by global chemical market intelligence service ICIS pricing at the time of writing.
Traders and brokers said the market had grown weaker in recent weeks due to the lack of arbitrage options.
The lack of a gasoline arbitrage window from Europe to the U?xml:namespace>
The petrochemical sector was also heard to have reduced their level of demand in the market due to the high naphtha prices and was actively seeking alternative feedstock material, such as liquefied petroleum gas (LPG).
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|