The CIF Northwest European naphtha price dropped $5.50 Wednesday from Tuesday's close to be assessed by Platts at $830.00/mt, the lowest since January 26, 2011, when it was assessed at $829.75/mt.
The outright price has been under pressure recently from falling ICE Brent crude prices.
Brent fell $2.63/barrel on the day Wednesday to trade at $106.19/b at 1630 London time after news of a potential deal between Iran and the UN nuclear agency eased supply disruption fears.
Outright prices are also falling as the physical naphtha crack, or the oil product's differential to crude, is currently trading at lows not seen since the fourth quarter of 2011. On Wednesday's close, the physical crack was assessed at a near six-month low of minus $12.93/barrel, Platts data show.
The physical crack is under downward pressure from bearish fundamentals, with one trader pointing to excess global naphtha supply.
"The market is globally feeling on the long side. We're seeing run cuts in the East and less demand," the trader said.
A second trader said eurozone concerns were also weighing on cracks.
"It's mostly the economy. The eurozone has a knock-on effect. People are much more careful."
