25 October 2013 18:53 [Source: ICIS news]
LONDON (ICIS)--Naphtha trading activity in the open market platform rose from last week on the back of a decline in prices driven by weak upstream ICE Brent crude oil values, industry sources said on Friday.
Buyers purchased a total of eight cargoes this week, compared with three last week. Trading firm Glencore was active in the window and bought the majority of the naphtha cargoes.
The cargoes sold this week are due to load early to mid November, compared with most of the cargoes sold last week that are due to load around early November.
Meanwhile, the European November naphtha crack spread was at similar levels of around minus $6.80/bbl on Monday and Friday, despite weakening mid-week to minus $7.60/bbl.
The crack spread strengthened on Friday on the back of weak Brent crude oil futures, which in turn were pressured by poor demand for physical crude as refining margins remained lacklustre.
A crack spread is the price difference between crude oil and naphtha, calculated in US dollars per barrel. A crack spread is used instead of the flat price value to hedge in the naphtha swaps market, which in turn can influence values in the naphtha physical market.
($1 = €0.72)
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