Europe naphtha falls to 5-month low as crude slips

11 September 2008 12:36  [Source: ICIS news]

LONDON (ICIS news)--The spot price range for Europe naphtha is at its lowest level since April at $865-875/tonne (€614-621/tonne) on falling crude and a supply glut, helping to boost crack values to minus $3.20/bbl, traders said on Thursday.

 

The assessment was on a CIF (cost, insurance and freight) NWE (northwest Europe) basis, according to global chemical market intelligence service ICIS pricing.

 

Crack values actually rose as high as -$2.50/bbl at the end of trading on Wednesday, the highest in almost seven months.

 

Traders attributed the falling price not only to depreciating crude oil values but also to a glut of heavy naphtha, which remained unwanted by petrochemicals firms.

 

The improvement of crack values was down to falling crude oil prices and the disruption to gasoline refining by the hurricane season in the Gulf of Mexico, they added, where Hurricane Ike was currently closing in on the region.

 

However, there would be little short-term effect on physical spot market activity, which remained very quiet, traders said.

 

“The crack value is improving from [Hurricane] Ike but right now there is still not a great deal of demand for the light naphtha used in gasoline blending. We shall have to wait and see,” one trader said.

 

To discuss issues facing the chemicals industry visit ICIS connect

 

By: Alex Davis
+44 20 8652 3214

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