27 March 2012 22:43 [Source: ICIS news]
HOUSTON (ICIS)--US Gulf heavy naphtha spot prices jumped 7-8 cents/gal from last week as recent trades were based off more expensive and higher quality Gulf coast gasoline, a broker said on Tuesday.
The discount for heavy naphtha to the pricier US Gulf gasoline blend on Tuesday was 19.00 cents/gal (€0.04/litre), compared with 15.50 cents/gal on 23 March.
Spot naphtha traders negotiate by pricing naphtha at a discount or premium to spot US Gulf gasoline.
The spot price for naphtha on Tuesday was $3.1575-3.1675/gal, compared with $3.0800-3.0900/gal on 23 March.
The blend on 23 March was 7-9 cents/gal cheaper than the gasoline blend traders based naphtha from on Monday and Tuesday, the broker said . The current gasoline blend is the highest quality summer gasoline blend on the Gulf coast.
The drop in the discount for naphtha from 15.50 cents/gal to 19.00 cents/gal represents an attempt by market participants to mitigate the climb in naphtha spot prices that comes as a result of the pricier gasoline, the broker said.
($1 = €0.75)
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