Tuesday, July 26, 2011

Asia's physical naphtha flips into backwardation

Asia's physical naphtha prompt timespread flipped into backwardation on Friday, buoyed by the prospect of tighter supply as some Middle East cargoes head for Europe, as per Reuters. At least 140,000 ttons of naphtha from the Middle East was put on options to sail to Northwest Europe in a rare reversal of arbitrage flow as demand for gasoline blending rose in the West.

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