15 October 2010 11:23 [Source: ICIS news]
Industrial action at the Fos-Lavera oil terminal in southern
The naphtha cargo market was described as balanced and fairly quiet, but the strike was thought to be only a minor factor in this.
“There certainly hasn’t been a major move on naphtha prices because of the strikes,” one trader said.
There was some difference of opinion regarding any influence of the walkouts on European participants’ general mood. One trader was of the opinion that buyers were purchasing slightly more naphtha due to the uncertainty caused by the strikes.
A more common view, however, was that European players were not overly concerned. Only anyone directly involved with plants in
Sources elaborated that in addition to many French oil refineries being out of action, many crackers there were not operating either. This resulted in lower French demand for naphtha as a feedstock.
Should the French strikes continue, however, then a shortage of gasoline could increase the demand for naphtha.
Also, when the industrial action concludes and refineries and crackers are back in operation, a trader predicted that the naphtha market would temporarily become bullish.
On Friday morning the naphtha cargo market was trading at $770-778/tonne CIF (cost, insurance and freight) NWE (northwest Europe).
(€1 = €0.71)
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