Europe naphtha crack rises on flat prices, crude drops

09 April 2013 17:54  [Source: ICIS news]

LONDON (ICIS)--European naphtha prices have stayed stable in the mid $840s/tonne (€647s/tonne) CIF (cost, insurance, freight) NWE (northwest Europe) for four consecutive trading days, despite a drop in Brent crude futures, leading to a rise in the region's naphtha refining margins, traders said on Tuesday.

Brent futures for June fell almost $1.00/bbl from $105.74/bbl at 16:30 GMT on Thursday 4 April to $104.83/bbl on Tuesday 9 April.

However, naphtha traded at relatively stable levels, within a range of $843-845/tonne CIF NWE, during the four consecutive sessions in the open market trading window.

May naphtha refining margins, or crack spread, rose from -$11.55/bbl on 4 April to -$10.30/bbl on 9 April, supported by the crude price drop and stable naphtha prices.

A trader said on Tuesday: "[Naphtha] traded at $845/tonne in the window and the May crack is worth -$10.30/bbl right now."

Last week, European May naphtha refining margins slipped below -$12/bbl because of a drop in naphtha prices, and despite a steep fall in Brent crude.

The main application of naphtha is in the petrochemical production of olefins. Naphtha is also used as a feedstock for gasoline blending.

($1 = €0.77)

Follow Cuckoo James on Twitter

By: Cuckoo James
+44 (0) 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

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