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Resilient gasoline blending demand-
Low interest rates from crackers in Europe



Europe's
gasoline-blending demand for naphtha was strong despite the volatile consumer
appetite in recent weeks. This partially offsets the weak petrochemical sector
consumption. A source said that "Blending demand is increasing, even
though there are slow periods and spikes in demand." Sources say that
the steep spread in gasoline and naphtha should continue to support blend
activity, as well as the expectation of an open gasoline arbitrage between the
US and Northwest Europe. CIF NWE naphtha swaps were assessed at $144/mt
less than equivalent gasoline swaps, which was $12.50/mt lower on the
day. Sources said that high-quality light virgin naphtha traded at a $50-55/mt
premium over open-specification naphtha. According to Kpler shipping data,
Northwest Europe's gasoline exports to the US in November were...