Saudi Aramco undecided about 60,000 tons naphtha for mid-October loading to Asia

20-Sep-10

Saudi Aramco, not a regular spot seller until H2-2010, seems undecided about selling 60,000 tons of naphtha for mid-October loading to Asia due to a weak market. Saudi Aramco was initially to sell 45,000 tons for October 14-16 loading from Rabigh to be co-loaded with 15,000 tons from Jeddah as per Reuters. The company, Asia's top naphtha supplier, has recently concluded deals for 55,000-75,000 tons for October 2-4 loading from Ras Tanura to Chevron at a premium of about US$8/ton to Middle East quotes on a free-on-board (FOB) basis. These premiums have seen a sizeable drop compared to previous sales for parcels lifting in H2-September. Abundant supplies have continued to weigh on sentiment.