NWE MTBE/ETBE – MTBE ratio to Eurobob slides to 1.194

– Trading activity picks up

– MTBE falls $5/m on day

The European MTBE price was assessed at $679/mt FOB ARA Thursday, from $684/mt Thursday, on the back of a trade in the  Market on Close assessment process. During the MOC process, TOTSA registered an offer for a 1,000 mt cargo loading March 18-22 and traded with BP towards the end of process at $679/mt. The MTBE factor, the relationship to Eurobob gasoline, was assessed at 1.194 Thursday, down from 1.211 Thursday. Sources had described Thursday’s factor as attractive for sellers, and had been expected to generate more activity. MTBE demand in Europe was heard, according to sources. The related upstream energy markets also rose. Eurobob gasoline barges were assessed at $568.75/mt FOB AR Thursday, up from $564.75/mt Thursday. This followed a 52 cent increase in crude, with the ICE Brent front-month London 16:30 assessment at $67.09/b. In Asia, MTBE was assessed $13/mt higher on the day at $704/mt FOB Singapore Thursday. The Asian MTBE factor rose to 1.148 Thursday.

RATIONALE:

S&P Global  assessed European MTBE at $679/mt FOB ARA Thursday, down $5/mt on the day, in line with a trade. BP traded on TOTSA’s 1,000 mt offer at $679/mt, for front-end loading, during the  Market on Close assessment process. The trade disproved the MTBE factor from Thursday. The assessment was between outstanding bids and offer. The sharpest outstanding bid was at $670/mt by BP and the outstanding offer by Shell was at $688/mt, both loading mid-window. ETBE was assessed at a stable premium over MTBE at $213.25/mt.

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