US MTBE Chemical Industry: Discount to Northwest Europe hits double digits

Chemical Industry

– FOB USG 10.66 cents below FOB ARA

– MOC offer seen at 213 cents/gal FOB USG

While spot USG MTBE fell less than 4 cents day on day, its discount to Northwest Europe hit double digits Friday. In the Friday Chemical Industry on Close assessment process, Lukoil entered with an offer at 221 cents/gal FOB USG, moving it down to 213 cents/gal FOB USG. No bids or trades were confirmed over the day. With the MOC process offer, spot Gulf Coast pricing was pushed down 3.61 cents/gal. In Europe Chemical Industry, however, pricing was up 4.64 cents/gal to 223.41 cents/gal. With opposite price movements in the two regions, Gulf Coast pricing was assessed at a 10.66-cent discount to its Northwest European counterpart. In related energy, NYMEX May RBOB fell 3.83 cents to $2.0309/gal. Blended and shipped values were last estimated near 257 cents/gal while the MTBE factor relative to gasoline was at 1.0567. In Asia, the FOB Singapore marker was up $15/mt (about 4.22 cents/gal) to $774/mt (about 217.80 cents/gal).

RATIONALE:

Spot USG MTBE was assessed Friday at 212.75 cents/gal FOB USG, down 3.61 cents on the day. The assessment came below an offer in the Friday Chemical Industry on Close assessment process at 213 cents/gal FOB USG.

Chemical Industry
Chemical Industry

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