ONGC sells H2-July naphtha cargo at years lowest premium for cargo sold out of Hazira

24-Jun-14

India's Oil & Natural Gas Corp (ONGC) has sold a H2-July naphtha cargo to Mercuria at low US$20s/ton above Middle East quotes on a free-on-board (FOB) basis, as per traders in Reuters. This made it the lowest premium ONGC had fetched for a cargo sold out of Hazira this year. The 35,000 ton cargo, scheduled for July 20-21 loading from Hazira, was sold on June 20, coming at a time when sentiment has been hit by expectations of growing supplies. A Singapore based trader opined that demand for naphtha as a gasoline blend stock has came off in the Europe, creating a knock-on effect on Asia. It seems that in the current scenario no one is keen on holding barrels. Lower demand for naphtha in Europe could prompt the west to push more cargoes to Asia, traders said. But Asian naphtha supplies are also increasing due to three new condensates starting up from July in South Korea and Singapore. ONGC had previously sold 35,000 tons of naphtha from Hazira for early July loading to Marubeni at a premium of about US$30/ton to Middle East quotes on a FOB basis.