30 July 2007 13:49 [Source: ICIS news]
The August crack spread was quoted at minus $2.30/bbl to minus $1.80/bbl on Monday morning, which is the first time it moved below minus $2.00/bbl in 2007.
Basing on the crack spread and the latest on crude which was recorded at $75.97/bbl for September Brent, European open spec naphtha was assessed around $650-655/tonne CIF (cost, insurance and freight) NWE (northwest ?xml:namespace>
Traders and brokers said that market fundamentals were weak.
Support from the gasoline sector has been limited recently, as demand in the market has fallen due to a lack of arbitrage possibilities from Europe to the
Last week, 10ppm premium unleaded gasoline barges were traded in the range $681-718/tonne
This was the first time since the beginning of April, week 14, that average prices based on trades throughout the week were below $700/tonne.
Demand has also been weak lately, with petrochemical end-users actively seeking alternative feedstock. LPG (liquefied petroleum gas) has been substituted over naphtha, which has lead to record high LPG prices this summer.
Arbitrage options from Europe to Asia have been closed since May this year as Indian exporters upped their export levels to other Asia countries, closing the arbitrage window which was open for the first five months of this year.
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