18 October 2013 17:34 [Source: ICIS news]
LONDON (ICIS)--The European methyl tertiary butyl ether (MTBE) factor against Eurobob gasoline cash barges declined this week, ICIS data showed on Friday.
The factor level declined from 1.15 to 1.12 this week, with demand from gasoline blenders having now petered out.
The situation has been exacerbated by the current backwardation in the gasoline market, which is deterring the storage of material, sources noted.
“The factor level is now at levels last seen in April this year,” one trader said.
“We need something to increase the factor. If nothing happens it will slide further,” another trader said.
Naphtha and gasoline values remain trading within close proximity to each other, leading some sources to suggest this will place further downward pressure on the MTBE premium over gasoline.
($1 = €0.74)
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