Tight supplies, firmer crude prop NWE naphtha cargoes to 10 week high

08-Oct-15

CIF Northwest European naphtha cargoes have risen to a 10-week high, with sentiment boosted by an open arbitrage to Asia and lower resupply flows from Russia, while flat prices were pulled higher by strong Brent crude futures, as per Platts. Cargoes were assessed at US$458.50/mt Tuesday, US$18.25/mt higher on the day, Platts data showed. CIF NWE naphtha cargoes were last higher July 30 at US$459.50/mt. According to market sources, prompt availability was thinning because of reduced volumes from the Baltics on the back of Russian refinery maintenance. "[There is] much less available at the front", a trading source said. In addition, ample arbitrage volumes to Asia and flows to Brazil and the US took length out of the European naphtha market. "Most of the work is done by people moving [naphtha] out of the region", a second trader said. "If we continue to see arbitrage to the west and east open, we should not have much prompt availability."