Reliance Industries sells naphtha cargo for mid May loading at premiums in the high US$30s

21-Apr-14

India's Reliance Industries has sold a naphtha cargo for May 15-20 loading from Sikka at premiums in the high US$30s/ton level to Middle East quotes on a free-on-board (FOB) basis, sa per traders in Reuters. The buyer of the long-range vessel cargo could be an oil major, but this could not be directly confirmed. The last time Reliance has received high US$30s/ton was for a January 2014 lifting cargo. Brisk demand for naphtha has been supporting spot premiums. Buyers currently have limited options but to rely heavily on naphtha as alternative feedstock liquefied petroleum gas (LPG) prices have risen. The Indian refiner has marginally reduced its naphtha imports for March and April loading to a total of about 90,000 tonnes each, down from over 100,000 tonnes in January and February. This is being attributed to maintenance at a crude unit and stronger gasoline demand.