Saudi Aramco has completed July naphtha spot sales - having sold up to 600,000 tons. The cargoes, to be lifted from various ports including Rabigh, Jeddah and Ras Tanura, were sold to 6-7 buyers through private negotiations. The spot premiums, at an average of US$15/ton to Middle East quotes for the July parcels, were sharply lower than the premiums Saudi Aramco had fetched in a six-month contract ending December 2012 at US$25-33/ton to its own price formula. Volumes for this time of the year are unusually high. This could be because the company’s term buyers did not renew their contracts due to record-high premiums, as per Reuters. So it seems that those who did not renew their contracts are now finding alternative supply. Impact on the market of the high spot exports for July are expected to be marginal, as they come at a time when India is reducing naphtha exports because of refinery maintenance and healthy gasoline demand.
05-Jul-12 
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