09 January 2012 22:04 [Source: ICIS news]
HOUSTON (ICIS)--US Gulf spot naphtha weakened because the cost to produce it was cheaper than buying it in the spot market, a market trader said on Monday.
During the past week, the increase in gasoline prices has exceeded the climb for crude oil. On 3 January, gasoline futures were $12.48/bbl over West Texas Intermediate (WTI) crude, which settled at $102.96/bbl. Gasoline futures settled at $2.7486/gal.
Crude oil is the feedstock for naphtha production, while naphtha is the feedstock for a gasoline blendstock. Since crude oil is cheaper in comparison to gasoline, naphtha is cheaper to manufacture, relatively, sources said.Since 12 December, heavy naphtha has traded at a premium to spot Gulf coast gasoline. On Monday, heavy naphtha was assessed at a discount of 1.25 cents/gal to spot Gulf Coast gasoline on the Colonial Pipeline. Spot naphtha was assessed at $2.70–2.71/gal on Monday.
Spot sellers weakened offers for spot naphtha to be more in line with the manufacturing price of naphtha.
On Monday, gasoline futures were at a premium of $14.57/bbl to WTI. Crude settled at $101.31/bbl, and gasoline settled at $2.7590/gal.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections