14 September 2007 11:32 [Source: ICIS news]
LONDON (ICIS news)--Prices for European open spec naphtha cargoes have climbed steadily to around $690/tonne as arbitrage options to the US have opened, traders said on Friday.
At least two-to-three large range 2 (LR2) tankers have already been fixed to the ?xml:namespace>
Each tanker was expected to be carrying 80,000-159,999 tonnes of naphtha from the Red sea and
Traders said that the material was more than likely to enter the gasoline pool.
One Europe-based naphtha trader said the fixtures more than likely took place on Wednesday this week when European cargoes jumped by around $15.00/tonne.
Open spec naphtha cargoes were assessed in a $688-694/tonne CIF (cost, insurance and freight) NWE (northwest Europe) range, $24.00/tonne higher than prices one week ago, according to global chemical market intelligence service ICIS pricing.
Traders said demand in the market was improving and the October crack spread was quoted at a $1.40/bbl premium to Brent crude.
According to the Energy Information Administration (EIA), gasoline stock levels in the
However, this was deemed impossible as US producers were seeking summer spec material and European producers have already switched to winter spec gasoline production, sources said.
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