19 September 2008 17:50 [Source: ICIS news]
LONDON (ICIS news)--Supply length and volatility in both the financial and energy markets saw spot benzene and styrene trading down this week by as much as $160/tonne (€112/tonne) from the previous week before regaining much of their lost value in a largely illiquid market.
“It’s like a yo-yo market,” said one trader. “I sincerely have no idea where it’s going to go next.”
Benzene had traded as low as $1,075/tonne CIF (cost, insurance and freight) ARA (?xml:namespace>
The previous week, benzene had traded at a high of $1,185/tonne CIF ARA and styrene at a high of $1,575/tonne FOB
On Friday, benzene traded at $1,142/tonne and $1,150/tonne CIF ARA, and styrene was valued at $1,450-1,500/tonne FOB
The spread between these values was, players said, due to an uncertain and volatile market, predicated on equally volatile energy markets themselves in thrall to fluctuating financial markets.
Said a source at a major producer: “The market is full of uncertainties. Gasoline is high in the
"But energy isn’t related to fundamentals anyway, because of what’s happening in the financial markets,” he added.
Benzene was structurally long, players said, with downstream supply weak across the board.
Oil too had been in flux, but as the Federal Reserve acted towards the end of the week to stabilise the financial markets, oil futures spiked to above $100/bbl, with NYMEX light sweet crude hitting a high of $103.64/bbl.
($1 = €0.70)
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