Spread between naphtha and gasoline widens in the Middle East

22-Apr-11

Gasoline premiums in the Middle East edged higher this week on pockets of buying and a strong market in the West, and amid the widening spread between naphtha and gasoline as per Reuters. In Europe, gasoline crack spreads improved as product prices outpaced oil market gains, supported by ongoing maintenance at Europe's key refineries. The naphtha market was also supported by ongoing maintenance, partly the reason why the gasoline premiums held onto high levels. Kuwait Petroleum Corp (KPC) sold a total of nearly 150,000 tons of naphtha for May loading to Total and Marubeni. Last week, it sold 74,000 tons at premiums in high US$20s/ton to Middle East quotes on a free-on-board (FOB) basis. Wednesday saw Asia's naphtha price and cracks recover to a two-session high on the back of strong sentiment due to limited Western exports to Asia.