27 September 2013 19:58 [Source: ICIS news]
LONDON (ICIS)--Naphtha trading activity in the open-market platform has gathered pace, with buyers purchasing eight cargoes this week compared with five during the previous week, industry sources said on Friday.
Cargo sales have spiked in September after an unremarkable August. Thirty-eight cargo deals have been concluded this month compared with just 18 last month and 28 during a better-than-expected August.
Trading firms Glencore, Morgan Stanley, Gunvor, Dow and Vitol were in the market to sell, while oil major Shell scooped up the majority of cargoes.
Another oil major, BP, retained its presence in the market by purchasing three cargoes. The cargoes are due to load mostly in mid-October, compared with the cargoes loading from 26 September to early October sold last week.
Meanwhile, the October naphtha crack spread dropped through the week on oversupply and slow demand. The spread slipped from minus $6.45/bbl last Friday evening to minus $7.50/bbl on Wednesday evening.
The crack then shot up to minus $7.10/bbl on Thursday morning on improved gasoline demand from Saudi Arabia and Asia, before dropping back again to minus $7.65/bbl by Friday evening because of a quiet market.
The Northwest European naphtha weekly price range was at $893-905/tonne (€661-670/tonne) CIF (cost, insurance and freight) NWE (northwest Europe), down $18-35/tonne from last week.
($1 = €0.74)
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