ONGC sells naphtha: adds to increasing volume of exports from India

08-Feb-08

Oil and Natural Gas Corp (ONGC) has sold 35000 tons of full-range naphtha for H1-March loading. The cargo was sold at a premium of US$13.50/ton to Middle East quotes, compared with a premium of US$18/ton it commanded for its previous cargo in January. MRPL, BPCL and IOC have together exported 542,500 tons of naphtha for February and early March to 542,500 tons, indicating a recovery in exports towards the high monthly volumes of upto 1 mln tons until November 2007. Dual forces of increased supplies and a dip in demand on account of scheduled plant maintenance turnarounds in Q2-08, have pushed benchmark Asian open-spec naphtha premium to Brent to below $160 a ton for the first time since late-November.