Via tender, Bharat Petroleum Corp (BPCL) has fetched the highest premium by any Indian refiner this year, for a naphtha cargo for January lifting. The cargo was a 27,000 ton parcel for Jan. 11-16 loading from port of Kochi, sold to Emirates National Oil Co (ENOC) at a premium of about US$59/ton to Middle East quotes, on free on board basis.
However, sources opine that this could be a distress purchase by ENOC – a company that does not regularly source naphtha from India. The possible cause could be reduced supplies from Europe because of higher freight rates that have affected movement of naphtha cargoes from Europe to Asia.
Oil and Natural Gas Corp (ONGC) has sold 35,000 tons of naphtha for Jan 19-20 loading from Mumbai to trader Glencore at a premium of about US$48/ton to Middle East quotes on FOB basis. Higher premiums are a result of a delay in arrival of about 700,000 tons of Western naphtha estimated in Q1-2010.