Lack of prompt supply props European naphtha premiums

18-Apr-11

European naphtha cargo premiums surged by almost US$12/b amid a lack of offers in the prompt market, according Platts data. The premium for 12,500 mt naphtha cargoes over May swaps was assessed at US$22.50/mt Thursday, up from US$10/b. Trading sources attributed the rising premiums mainly to a lack of smaller cargoes available to the market, with shipments continuing to move out of the region to Brazil on increased demand from the gasoline pool. Naphtha demand has also risen in the Mediterranean as the market scouts for replacement of barrels lost in the region following civil unrest in Libya.