The CIF Northwest Europe August naphtha crack swap slipped Monday to around minus $9/barrel, sources said, after posting a two-month high on Friday's close, according to Platts data.
At Friday's European close, the CIF NWE August naphtha crack swap was up by $0.42 on-the-day at minus $8.70/b, the highest since April 30 when it was at minus $8.40/b, Platts data show.
A crack measures the difference between the price of oil and the concurrent price of products made from crude.
"The market is by no means strong, but the front of the market is tight," a trader said after Friday's 1630 London close.
Monday morning, the CIF NWE front month crack swap was heard pegged at minus $9/b, sources said.
"Cracks are softer this morning, but there's no particular reason," a petrochemical source said.
The August crack swap has recovered significantly since mid-June when it fell to minus $15.40/b, the lowest since hitting minus $16.10/b in December 2008.
On week, it had gained $1.90/b by Friday's close, Platts data show.
Despite bearish fundamentals, including 'reverse arbitrage' flows and poor petrochemical demand, a rush of short-covering in the Platts Market on Close Assessment process provided a boost, traders said.
