05 July 2013 17:20 [Source: ICIS news]
LONDON (ICIS)--The European methyl tertiary butyl ether (MTBE) factor against gasoline increased further this week, with a flurry of trading activity during the open market session in the early part of the week.
The factor hit 1.19-1.20 on Tuesday, with eight trades taking place during open trading on the first two days of the week.
The increased buying interest and higher factor placed strong upward pressure on prices earlier in the week. However, buying interest in the open market petered out and the factor then declined to 1.16 on Thursday, leading MTBE prices to decline dramatically.
With gasoline values remaining relatively stable throughout the week, and buying interest still very much present in the market, participants were at a loss as to the reasons behind this.
One supplier said that demand in the Mediterranean remains strong.
“Increased consumption seen from this region could be a reason behind the lower MTBE stock levels now in northwest Europe,” the supplier said.
($1 = €0.77)
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