The mild winter destroyed propane demand for heating purposes,leading to wider and wider propane-naphtha spreads.Front-month large propane cargo swaps were valued at $119/mt lower than corresponding NWE naphtha cargo swaps on a CIF basis on March 20-close to a nine-month low.The spread had been $105/mt seven days earlier.Butane sentiment also suffered as Europe's gasoline market remained fairly weak,limiting demand for butane as a gasoline blends tock.A bit of improvement in gasoline cracks late in 1Q coupled with delays in butane shipments from the US due to fog inhibiting marine traffic at the US Gulf Coast offered some short-lived support to the butane market.Butane's value as a blending component has been decreasing as producers make the switch to summer-grade specifications,leaving demand for butane--like propane-dependent on the PC sector.
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