Blendstocks: Lack of arb

摘要

European naphtha fell nearly 10/mt Tuesday as the arbitrage to Asia weakened. Although it remained open on paper, at least one trader noted the arbitrage has "come in" and hence is weighing down on NWE naphtha sentiment.Underscoring the more bearish tone, both BP and Gunvor offered during the window, Gunvor a cargo for delivery March 2-6 down to 535/mt, while BP was unchanged at 539/mt for the same delivery dates. BP also bid for a cargo for delivery March 13-17 up to 527/mt.Players, however, did not rule out the possibility that Asian interest will come back after the holidays.