Adnoc sets term naphtha premium 75%-80% lower

21-Nov-08

Asia's third-largest supplier - Abu Dhabi National Oil Co (Adnoc) has announced its January-December 2009 term naphtha premium at $3-5/ton FOB Middle East. Adnoc's pentane-plus naphtha has been offered at US$5/ton premium, low-sulphur naphtha at US$4/ton premium and splitter naphtha at US$3/ton premium. These levels indicate that offers have seen a marked reduction of 75-80%, as compared to the company's June-December 2008 prices. The price reduction is mainly caused by deterioration of petrochemical demand, which is estimated to last for a minimum of 6 months. Hence, even Kuwait Petroleum Corp (KPC), has quoted a US$2/ton premium for December 2008 to November 2009.