Russia offers 1.2 mln tons of naphtha in a rare 12-month contract

10-Sep-13

Russia's Rosneft has offered up to 1.2 mln tons of naphtha in a rare 12-month contract to start from Oct. 15, 2013, as per traders in Reuters. The cargoes will be shipped from Rosneft's Angarskiy and Komsomolskiy plants and will be exported through the port of Nakhodka, which is nearer to Asia than to Europe. This is a rare move as Rosneft usually offers a 6-month contract. Traders opine that this is not a good time for sellers to lock themselves in for a longer period, as under current conditions, the Asian naphtha market is marked by surplus cargoes. Some traders expect the glut to clear from end-October, while others have said it will last until at least the H2-November.