ADNOC lowers premiums for three naphtha grades in one year contract starting August 13

26-Jun-13

Abu Dhabi National Oil Co (ADNOC) has cut the price on offers for three of its naphtha grades in a one-year contract starting in August to around US$29.50 to US$31/ton to its own price formula on free-on-board (FOB) basis, as per Reuters. Splitter grade was pegged at about US$29.50/ton premium, low sulphur grade at US$30/ton premium and pentane grade at US$31/ton premium. The premiums were around 16% lower than in its term deal for the three grades lifting May 2013 to April 2014. Sentiments in the naphtha market have weakened at the start of June following a glut of European naphtha to Asia. But demand has picked up in the past few days as costlier alternative feedstock liquefied petroleum gas (LPG) has pushed buyers to rely on naphtha.