US Gulf Coast naphtha barges dipped Tuesday to a near-three-month low against barge gasoline, with product waiting to be delivered in the Houston Ship Channel keeping the market long.
Platts-specification standard naphtha CIF Houston was assessed down 50 points at Gulf Coast barge gasoline minus 27 cents/gal on an offer 25 points higher. No bids were spotted, market sources said.
The last time the differential was lower was October 6, 2016, with the figure going below 30 cents/gal under the basis on refiner selling.
The differential against barge gasoline for standard naphtha, the feedstock for a refinery's gasoline-focused reformer, has fallen 16.47 cents/gal since November 11, 2016. Tens of thousands of barrels have gone wanting for buyers recently, and trade activity has been light, market sources said.
Barges have been waiting several days since mid-December outside terminals in the Ship Channel, with waits beyond the typical three to five days extending into Tuesday, the sources said.
"It depends which terminal you are at," a US refined products source said. "There are plenty of barges on the water for those who need prompt product."
The source said he suspected a barge load of naphtha might sell at the mid-30s below barge gasoline if a bidder could be found.
Light straight-run naphtha, part of the blend for winter gasoline, also was weaker with basis natural gasoline falling. LSR naphtha barges FOB Houston for late January to early February fell $10.30/mt to $469.17/mt.
