US stock build, gas-nap spread keeps gasoline buyers from naphtha

04 October 2013 14:52  [Source: ICIS news]

LONDON (ICIS)--A build up in US gasoline stocks and an unfavourable price spread between European gasoline and naphtha were curbing naphtha demand from the gasoline sector, industry sources said on Friday.

Potential demand for European gasoline, and consequently naphtha, from the key US market was pressured by data from the US Energy Information Administration on Wednesday, showing gasoline stockpiles in the US rose by 3.5m barrels last week.

Meanwhile, the price spread between gasoline and naphtha was relatively steady from last week, and continued to be too narrow to attract blending demand for naphtha.

The wider the price spread, the better is the naphtha demand for gasoline production.

 THIS WEEK  54 56 49 52 N/A
 LAST WEEK  58 53 52 49 46

Gasoline versus naphtha average price differential

Naphtha is used as a blending component in gasoline stocks, especially those exported to the key US market.

($1 = €0.73)

Follow Cuckoo James on Twitter

By: Cuckoo James
+44 (0) 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly