LONDON (ICIS)--The European naphtha differential over ICE Brent crude oil futures fell to a two-month low on a weaker Asian market, industry sources said on Thursday.
The European February crack spread fell to minus $5.45/bbl on Thursday morning, down from minus $4.20/bbl on Wednesday morning.
The lower differential – or the 'crack spread' – is a sign that sentiment in the naphtha market is weak.
A European naphtha trader said: "[The crack] is ticking down further. Still support in the east but heavy selling in the eastern window, hence cracks went down."
The second-half February Japan open spec contract fell to $945-947/tonne CFR (cost & freight) on Wednesday, down by $13.50/tonne from Tuesday, ICIS data showed.