Europe naphtha slumps on weaker crack spread, lower crude prices

25 January 2011 12:27  [Source: ICIS news]

LONDON (ICIS)--The European naphtha cargo price range posted a loss of $21/tonne on Tuesday as the crack spread softened and crude oil prices fell.

The previous afternoon's naphtha cargo range was assessed at $844-852/tonne CIF (cost, insurance and freight) NWE (northwest Europe). By Tuesday morning it had slumped to $823-831/tonne CIF NWE.

This is the crack spread's third week in negative territory. It weakened from minus $2/bbl late on 24 January to minus $2.30/bbl on Tuesday morning.

“It’s because of a weak market with more sellers than buyers,” according to a trader.

The price of crude oil fell as a result of a stronger US dollar, speculation that OPEC may increase output and expectations that this week's US inventory data will show an increase in crude stocks.

At 11:30 GMT, Brent crude was trading at $95.15/bbl, down by $1.45/bbl.

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By: Jo Pitches
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