18 March 2011 13:59 [Source: ICIS news]
LONDON (ICIS)--The European naphtha cargo range climbed $19/tonne (€13/tonne) due to a firmer crack spread and rises in crude oil prices stemming from fears of violence in the Middle East further affecting supply, sources said on Friday.
At 11.00 GMT, the naphtha cargo range was assessed at $965-973/tonne CIF (cost, insurance and freight) NWE (?xml:namespace>
This compares to the afternoon of 17 March, when the naphtha cargo range was at $946-954/tonne CIF NWE, May Brent was at $113.76/bbl and the crack spread at minus $7.35/bbl.
On the 14 and 15 March, the naphtha crack spread had softened while Brent crude oil prices fell on fears over the lack of Japanese demand for both oil and naphtha following the massive earthquake and tsunami that hit the country on 11 March. The explosions at the Fukushima Daiichi nuclear plant that followed has worsened fears.
However, by 16 March, news that state forces in
Despite further crude oil price hikes later in the week, the crack spread continues to edge up, partly due to the European naphtha market tightening.
“Demand for naphtha in
“Firstly, the crack was going down too fast at the beginning of the week, compared to gasoline and propane. What we’re seeing now is a correction. Secondly,
With the onset of the
For now, concerns about the lack of demand from
At 12.15 GMT, May Brent was trading at $116.30/bbl.
($1 = €0.71)
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