ONGC doubles volume of naphtha for August from usual levels

15-Jul-10

In a bid to avoid getting caught in a weaker market, India’s Oil & Natural Gas Corp (ONGC) has doubled the volume it usually trades in one spot tender. ONGC has offered 70,000 tons of naphtha for August loading, in a bid to sell as much as it can before sentiment worsens as demand weakens, as per Reuters. ONGC has offered two 35,000 ton cargoes for Aug. 10-12, and Aug. 20-21 loading from the port of Hazira in a tender that closes on July 16. ONGC usually sells two-three spot parcels a month, but only one at a time. A cargo for July 29-30 loading from Hazira was sold by ONGC to Itochu at a premium of around US$9/ton FOB Middle East. After this Hindustan Petroleum Corp Ltd (HPCL) sold a prompt July loading cargo to Itochu, at discounts of US$5/ton to the refiner's own pricing formula on a FOB basis. - Premiums have flipped into discounts as naphtha demand has started to feel the impact of a shutdown at Formosa’s 700,000 tpa cracker following a fire.