Europe gas-naphtha spread still not wide enough to attract blenders

24 September 2013 16:21  [Source: ICIS news]

LONDON (ICIS)--The price spread between gasoline and naphtha is still not wide enough to attract blending demand for naphtha in Europe, industry sources said on Tuesday.

Naphtha October front-month swaps were assessed at $897-899/tonne CIF (cost, insurance & freight) NWE (northwest Europe).

Meanwhile, gasoline October swaps were trading at just $25/tonne above the naphtha price, making naphtha unattractive in terms of blending.

Naphtha is used as a blending component in gasoline stocks, especially those exported to the key US market. The wider the price spread, the better the demand for naphtha for gasoline production.

A trader said naphtha demand from the gasoline sector had "not at all" improved this week, despite hopes of a pick up after weeks of unfavourable blending economics.

($1 = €0.74)

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By: Cuckoo James
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