- Steeper backwardation with naphtha- Gasoline US arbitrage US may shut



The European naphtha market saw a
steepening in backwardation on September 29, when the spread for
October/November rose $2-3/mt to $9-10/mt. Sources say that the general sentiment wasn't necessarily
positive due to low petrochemical demand and weak economic fundamentals. A source said that he is having difficulty understanding why
naphtha has gone backward. On the heels
of Hurricane Ian's landfall in Florida, gasoline arbitrage to the US seemed to
be shrinking. Sources say that the storm
could cause destruction and impact demand, which will in turn affect US
consumption of European gasoline. The
October CIF NWE naphtha Swap was valued at $629-640/mt, an increase of $2.50-3.50/mt. The spread for the October/November CIF naphtha Swap was $9-10/mt.
This is an increase of $2-3/mt. November/December was $4.25-5.50/mt. The...