Sri Lanka's Ceypetco offers naphtha for August loading amid supply glut in Asia

05-Aug-13

Ceylon Petroleum Corp (Ceypetco), an irregular naphtha exporter, has offered 110,000 barrels of the light fuel for Aug. 25-26 loading from Colombo, as per Reuters. This comes at a time when Asia is already flooded with high volumes from the west. The market's weak fundamentals have led sellers to cancel offers or release cargoes at much lower prices than before. India's Essar Oil, for instance, on Aug. 1 sold 35,000 tons of naphtha for Aug. 27-31 loading at about US$15/ton above Middle East quotes on a free-on-board (FOB), reflecting a plunge of 40% in premiums compared with the sale of a H1-August cargo. South Korea's S-Oil Corp called off a term tender to sell September to December naphtha because of the lacklustre market.