ADNOC concludes Sept-May term deals at almost 20% lower premiums

05-Jul-13

The UAE's Abu Dhabi National Oil Co (ADNOC) has concluded its September 2013-May 2014 term with some Japanese end-users, as per sources in Platts. The premiums for the pentane or paraffinic naphtha, low sulfur naphtha and splitter naphtha grades were heard done at US$30/mt, US$28.50-29/mt, and US$28/mt, respectively. This represents a fall of 18.9% in premium for the paraffinic grade, and 18.3% and 21.1% drop for the low sulfur and splitter naphtha grades, respectively. All the premiums were priced to the ADNOC formula which takes the average of FOB Arab Gulf naphtha assessments by Platts and Petroleum Argus. The conclusion of this term deal came after ADNOC lowered offers twice following some buyers' resistance, sources said.