09 July 2013 15:22 [Source: ICIS news]
September ICE Brent crude oil futures rose from around $103/bbl on Tuesday 2 July (16:30 GMT) to around $106/bbl (11:30 GMT) on Tuesday 9 July.
Brent crude oil values strengthened partly on supply concerns fuelled by renewed political turmoil in Egypt.
Naphtha prices were assessed at $870-872/tonne CIF (cost, insurance & freight) NWE (northwest Europe) on Tuesday, compared with $849-850/tonne last Tuesday.
Prices above $870/tonne CIF NWE were last seen in early April 2013.
Part of the price increases seen in the European naphtha market is caused by reduced production of crude oil from Libya, which is mainly light-sweet and naphtha rich.
The curtailment of production is caused by civil protests in the north African nation which has led to closures of both oil fields and export terminals in recent weeks.
As a result, primary export market such as the Mediterranean is suffering from a shortage of light-sweet naphtha-rich crude and pushing up prices for alternatives such as Algerian Saharan Blend, which is now trading significantly higher compared to its official selling price.
The main application of naphtha is in the petrochemical production of olefins. Naphtha is also used as a feedstock for gasoline blending.
By Cuckoo James and Kawai Wong
($1 = €0.78)Follow Cuckoo James on Twitter
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.
|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