22 August 2013 16:50 [Source: ICIS news]
LONDON (ICIS)--The European methyl tertiary butyl ether (MTBE) factor against Eurobob cash barges increased during the early part of this week, owing to the improved demand in the region, sources said on Thursday.
The factor edged up to 1.19-1.20 on Monday, and stayed at that level on Tuesday, from 1.15-1.18 last week.
A trader noted that participants are now less willing to hold blending components in storage due to the impending switch from summer- to winter-specification gasoline, and the current backwardation between the two grades.
“With October approaching, people don’t carry a lot of stock…especially not components,” he said.
With MTBE now the most economical gasoline blending component, there has been an improved interest from blenders in the spot market, leading to an increased number of trades this week.
Another trader said it has seen good prompt demand, leading to difficulties in sourcing MTBE loading in August.
($1 = €0.75)
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