Northwest European ETBE premiums over MTBE Friday retreated under $200/mt for the first time in six months, as a well-supplied gasoline market in the region reduced spot demand for the octane-booster, traders said.
ETBE is assessed at a premium to MTBE, to reflect the economic advantages of blending one component into gasoline as opposed to the other. ETBE is an oxygenate made using ethanol, while MTBE is made with feedstock methanol.
ETBE premiums were assessed at $193.75/mt (purity adjusted to 95%) over MTBE on Friday, as Shell Trading Rotterdam offered a barge of ETBE, 1,000 mt, loading FOB Amsterdam-Rotterdam-Antwerp down to a premium of $205/mt for 100%
purity (to be purity adjusted).
There were no bids seen against this offer, or reported in the open market this week. As such, no trades were done.
The last time ETBE premiums were trading under $200/mt was on February 19, when Platts assessed ETBE at $190/mt over MTBE.
Trading sources this week widely reported a weaker market for gasoline components. European gasoline traders said the market was well supplied and September gasoline cracks -- the value of gasoline versus crude oil -- eased to under $6/barrel Friday.
As such, requirements for octane-boosters ETBE and MTBE have declined.
MTBE is currently weaker than expected for the summer months, traders in Europe said. As such, blenders reported they had received premium grade gasoline.
MTBE is assessed at a factor--effectively a percentage ratio -- to gasoline barges, to reflect the economics of blending the component into gasoline. It can also be assessed at an outright price in dollars/mt.
MTBE was assessed at 1.08 Friday. At this time last year, the factor was seen considerably higher, assessed at 1.23 on August 13, 2009.
ETBE is assessed at a premium to MTBE, to reflect the economic advantages of blending one component into gasoline as opposed to the other. ETBE is an oxygenate made using ethanol, while MTBE is made with feedstock methanol.
ETBE premiums were assessed at $193.75/mt (purity adjusted to 95%) over MTBE on Friday, as Shell Trading Rotterdam offered a barge of ETBE, 1,000 mt, loading FOB Amsterdam-Rotterdam-Antwerp down to a premium of $205/mt for 100%
purity (to be purity adjusted).
There were no bids seen against this offer, or reported in the open market this week. As such, no trades were done.
The last time ETBE premiums were trading under $200/mt was on February 19, when Platts assessed ETBE at $190/mt over MTBE.
Trading sources this week widely reported a weaker market for gasoline components. European gasoline traders said the market was well supplied and September gasoline cracks -- the value of gasoline versus crude oil -- eased to under $6/barrel Friday.
As such, requirements for octane-boosters ETBE and MTBE have declined.
MTBE is currently weaker than expected for the summer months, traders in Europe said. As such, blenders reported they had received premium grade gasoline.
MTBE is assessed at a factor--effectively a percentage ratio -- to gasoline barges, to reflect the economics of blending the component into gasoline. It can also be assessed at an outright price in dollars/mt.
MTBE was assessed at 1.08 Friday. At this time last year, the factor was seen considerably higher, assessed at 1.23 on August 13, 2009.
