- European naphtha cracks more- Fundamentals steady



To reflect the substantial fall in oil
prices, the Northwest European naphtha cracked rose strongly on July 5, by
$3.27-4.25/b to +/- $13.68-18.50/b. One
source stated that the crack [naphtha] is simply reflecting Brent's flat price
movements. Sources say that the European
naphtha market has been supported by better fundamentals in addition to an
inverse correlation to Brent prices. "Europe
is becoming tighter. The demand is strong. The reformers are running at full speed... petchem continues
to buy and there is still enough storage space in the tank for naphtha if
necessary," another source stated. The
petrochemical side is not affected by the recent drop in ethylene prices.
However, naphtha demand continues to be supported despite this. According to the second source, "Petchem margin is
strong and ethylene prices can...