The US benzene price climbed sharply from Friday's assessment as the turmoil in North African oil exporter Libya pushed crude prices higher.
March benzene on Tuesday was heard bid at 447 cents/gal FOB USG, with offers at 465 cents/gal FOB USG. On Friday, the price was assessed at 442 cents/gal FOB USG. The price was approaching record highs set in August 2008.
At that time, the prompt FOB price climbed as high as 468 cents/gal.
Climbing crude prices -- driven by the crisis in Libya, which exports some 1.5 million b/d of oil -- have been the primary cause of the higher benzene prices.
The NYMEX crude price in early US trading hours climbed as high as $94.49/barrel, up more than $8 from the close of trading on Friday. Since hitting those levels, the price has fallen back to near $91.20/barrel, up $5 from Friday.
There was no price settlement on Monday because of the US Presidents' Day holiday.
The US benzene market remained backwardated on Tuesday, with March DDP heard bid at 435 cents/gal and offered at 455 cents/gal DDP USG. The first half of April was heard bid at 420 cents/gal DDP USG and offered at 440 cents/gal DDP USG.
Even though most US offices were closed on Monday, there was still some trade activity reported. A 450 cents/gal DDP USG deal for H1 March was confirmed done on Monday. A 455 cents/gal FOB USG deal for March also was confirmed done.
