ADNOC's first naphtha spot sale after Ruwais expansion at below market price

16-Mar-15

Abu Dhabi National Oil Co (ADNOC) has sold about 125,000 tons of naphtha to Vitol at premiums that were at least US$10 below the market rate of US$28/ton to Middle East quotes on a free-on-board (FOB) basis. This was ADNOC's first naphtha spot sale after the expansion of its Ruwais refinery, where capacity has been more than doubled, as per Reuters. This would be the firm’s largest single spot tender in terms of volume. Shipment is scheduled for mid-April from Ruwais, traders said. Traders opine that since refiners usually need time to fine-tune oil products specifications when new units come onstream, it is common for them to sell their first batch of cargoes at low prices to attract buyers. The news of the sale, however, could not be confirmed as ADNOC and its buyers do not usually comment on their deals.