Europe naphtha market to stay bearish, oversupplied

The outlook for the European naphtha market remains bleak, with few, if any, changes expected for 2013, as per ICIS. A combination of adverse macroeconomic conditions, structural length and lacklustre requirements for the product are likely to continue to weigh on the market. 2012 has seen consistently negative crack spread, frequent oversupply and subdued demand. Naphtha pricing forecasts - largely dependent on crude oil values, which participants deem near-impossible to predict - are difficult. In terms of market conditions next year, with the European naphtha market structurally long and increasingly dependent on arbitrage opportunities to Asia, much will hinge on how the product performs in the east. Arbitrage opportunities this year have been few and far between, particularly during the second half of 2012. Asia is a buyer of naphtha. However, the east-west spread is currently negative [meaning that the arbitrage east is firmly closed for most grades]. It is often the case that, with Europe’s oversupply building, volumes are sent to Asia even if it is not financially viable to do so.
  More News  Post Your Comment

Previous News

Next News

{{comment.Name}} made a post.




There are no comments to display. Be the first one to comment!


Name Required.


Email Id Required.

Email Id Not Valid.


Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.

Message Required.

Click to Change image  Refresh Captcha