KPC concludes two more naphtha deals, total August spot exports rise above 270,000 tons

20-Jul-09

At a time when the market is under the influx of August supplies from the West, Kuwait Petroleum Corp (KPC) has sold 75,000 tons of full-range naphtha to two buyers, bringing its total August spot exports to over 270,000 tons, albeit at lower premiums. A 50,000 ton cargo was sold to Itochu, and a 25,000 ton cargo to Shell for H2-August lifting at a premium of US$8/ton to Middle East quotes, on a free-on-board (FOB) basis, lower than the twenty dollar premium it realized earlier for August lifting to buyers including Mitsui Oil and Itochu. Kuwait is pushing out high volumes of spot naphtha because of a delay in the start-up of its new aromatics plant. This indicates softening of the markets, with almost daily lowering of spreads, cracks and prices.