04 April 2014 17:09 [Source: ICIS news]
LONDON (ICIS)--Trading activity in the spot European methyl tertiary butyl ether (MTBE) market significantly reduced this week, sources said on Friday.
Following two weeks in which a total of 21,000 tonnes of MTBE exchanged hands, only 4,000 tonnes was traded during the open trading platform this week.
MTBE prices significantly fell as a result of the reduced buying interest, and the factor against Eurobob gasoline cash barges also declined to 1.12-1.14.
This decline was compounded by weaker upstream energy values, owing to losses made in the crude oil futures market.
One producer attributed the reduced levels of activity to the switch to summer grade gasoline this week in Europe.
“There is a big contango between March and April gasoline… blenders are staying out of the market until it corrects itself,” it said.
A trader noted that the naphtha vs gasoline spread had also declined, and this was stifling demand among gasoline blenders further.
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