CIF NWE European naphtha crack at 4 month low amid lackluster Asia market

12-Feb-14

The CIF Northwest European naphtha cargo front-month crack swap has dropped to a four month low on a softening Asian market and availability of Baltic export volumes, as per Platts. The front-month crack swap was at minus US$6.75/barrel at market close Monday a fall of a dollar over the day and the lowest end of day value since October 29 when it was assessed at minus US$7.55/b. The front-month crack swap was heard at minus US$6.80/b Tuesday. "It's mostly the East that's driving the weakness and weak sentiment, so Europe has to keep discounting to find a level where it can clear its natural length," a market source said. High arrivals of naphtha in the East over March combined with a cracker maintenance period in Asia have turned sentiments bearish. Delivered premiums in Asia were assessed at US$9.50/mt at Singapore market close Monday, down from US$13.50/mt two weeks ago.