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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