Middle East naphtha prices could rise as Rabigh-grade naphtha gets contaminated

04-Jun-10

Asian naphtha cracks hit a three-session high of US$119/ton mostly due to market reaction to contaminated cargoes from Rabigh, but saw limited price gains on heavy arbitrage arrivals- 1.2 mln tons of naphtha from refiners in Europe is scheduled to arrive within a couple of months. Naphtha prices in the Middle East are expected to rise as the region's key supplier PetroRabigh has suspended sale of 200,000 tons of naphtha. This decision was necessary because methyl tertiary butyl ether (MTBE), a gasoline additive, was found in supplies at the plant. This has contaminated about 200,000 tons of naphtha for cracking in petrochemical plants.