Toluene prices dipped below 300¢/USG yesterday, the lowest level seen since December 2010, as WTI settled at 77.19/bl.
Spot fob nitration-grade toluene closed at 290¢/USG yesterday as buyers eyeing weakness in the rest of the energy complex pulled bids lower. Front-month toluene prices tumbled 67.5¢/USG, or 18.8pc, since the start of October, as WTI fell 14.9pc during the same period. Toluene is tracking closely with movements in WTI, averaging 1.67 times the value of WTI during October.
In late October, toluene prices saw a surge of buying interest, with 70,000 bl traded for early November commitments, due to increased demand for the solvents market and as a producer on the Gulf coast experienced an outage. In the final days of October, sellers hoping to capitalize on the renewed interest raised offers to 335¢/USG.
dm/als
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