04 February 2011 17:38 [Source: ICIS news]
LONDON (ICIS)--The naphtha arbitrage from Europe to ?xml:namespace>
While the crisis in
The cost of transporting a 50,000-tonne cargo from the Mediterranean to
“A fortnight ago it would have cost around $1.85m to send a large cargo [from Europe to
The increase was partly due to rising crude oil prices and consequently higher fuel prices. In addition, insurance premiums have increased as a result of recent pirate attacks on vessels in the North Arabian Sea and
“A vessel from
There were believed to have been several other recent attempts to hijack vessels around the
Crude oil prices have risen over the last few days due to fears that the political unrest in
“All together this adds up to around an extra $6/tonne, which means the arbitrage to
The arbitrage to
Another source revealed that there was also concern about the possible closure of the Suez Canal if the unrest in
Closure of the vital canal would mean vessels would have to travel around the African continent, adding extra fuel costs and around ten more days to the journey.
However, this seemed increasingly unlikely due to the volume of traffic that travels through the
“Closing [the canal] would not be in anyone’s interest, least of all
Rising crude prices have driven the weekly average naphtha cargo price from $837.50/tonne on 28 January to $865/tonne on Friday.
On 28 January, March Brent crude was trading at $98.42/bbl. At 15:00 GMT on Friday, it was at $101.97/bbl.
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