The Northwest Europe physical naphtha crack surged Friday due to demand for storage and blending, but the market remains long on petrochemical feedstock, sources said.
"Physical availability for the next two-three weeks looks lighter than the structure and cracks are suggesting...The structure and gasoline-naphtha spread are definitely encouraging storing and max blending," a trader said.
On the close, the physical naphtha crack went up by $2.44/barrel on the day to minus $13.53/b, Platts data showed, supported by pockets of blending demand, a trader said.
"A little bit of demand for gasoline blending has provided a floor for naphtha," he said.
However, a second trader said the market was still long on the petrochemical side.
"Petchem grades are still under pressure. I heard one of the [Platts Market on close assessment process] window cargoes bought for June 25-30 delivery is being re-offered to the market." Further details about the cargo were not immediately available.
