Friday, March 16, 2012

Closed arbitrage from Mediterranean to Asia tank NWE naphtha cracks, backwardation

Northwest Europe naphtha cracks and the balance-month, front-month backwardation have touched new lows as the arbitrage from the Mediterranean to Asia is now closed, as per Platts. The arbitrage opporrtunity, which opened in mid-February due to a naphtha shortfall in Asia, started to diminish last week, shutting out new participants.

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