The European spot price of MTBE was assessed at $1,033/mt FOB ARA on Tuesday, pegging the factor to Ebob gasoline at 1.34.
Until Tuesday, the factor to gasoline had hovered above 1.4 for over three weeks, making October 2014 so far the strongest month on record, in terms of the factor to gasoline.
A shortage of high-octane blending components in Northwest Europe and strong export demand for MTBE has kept the factor to gasoline strong, sources have reported this month.
Refinery maintenance season in Europe, compounded by reformate exports from Europe to China, caused a squeeze in the MTBE spot market in the first two decades of October.
Several MTBE cargoes have been reported leaving the ARA region in early October.
Some 11,000 mt loaded in the second week of October and went to Greece.
A second cargo of similar size loaded last week in ARA and went to the Black Sea.
Sources have also reported cargoes amounting to 10-15,000 mt leaving ARA for terminals in the Baltic region.
Earlier in October, strong demand was also felt from blenders sending finished grade gasoline to West-Africa and Mexico.
The average MTBE factor to gasoline for October so far stands at 1.384, well ahead of the average MTBE factor to gasoline in October 2009, which measured 1.341.
Export demand from ARA still persists, with Greece's Hellenic Petroleum issuing a tender mid-October for a 10,000 mt requirement for end of November discharge in Greece.
