Upcoming switch to winter gasoline stifles blending component demand

05 September 2013 16:36  [Source: ICIS news]

LONDON (ICIS)--Demand for both methyl tertiary butyl ether (MTBE) and ethyl tertiary butyl ether (ETBE) have declined in Europe, owing to the impending switch from summer to winter specification gasoline, sources said on Thursday.

One trader said that participants are now less willing to hold blending components such as MTBE and ETBE in storage due to the backwardation between the summer and winter specification gasoline grades.

With market players looking ahead to the impending switch from summer to winter-spec gasoline, another trader said that interest would now turn to alternative blending components, such as butane.

This has depressed interest for MTBE and ETBE further, leading to minimal levels of demand in the spot market this week.

Prices for both products have also declined as a result.

By: Neha Popat
+44 208 652 3214

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