SINGAPORE: Abu Dhabi National Oil Co (ADNOC) has cut offers for naphtha scheduled for July 2018 to June 2019 for a second time, traders said.
This has brought levels down to $22 to $25 a tonne above its own price formula on a free-on-board (FOB) basis.
But these were still about double the premiums of an existing 12-month contract which expires in June at $11 to $13.
ADNOC’s pentane grade is now offered at $25 a tonne, with low-sulphur (East) grade at $24 followed by low-sulphur (West) and full-range grades at $22 each.
The talks started end April with offers pegged at $24 to $27 before it was brought down to $23 to $26 early this week.
These were later followed by another cut to current levels.
Current naphtha fundamentals were in favour of ADNOC as supplies were tighter while demand has remained firm.
Source: Brecorder
