ADNOC to start term naphtha talks next week-traders

17 February 2010 10:08  [Source: ICIS news]

SINGAPORE (ICIS news)--Abu Dhabi National Oil Co (ADNOC) will kick off term naphtha talks with Asian buyers next week for April 2010 to March 2011 supply, traders said on Wednesday.

“They (ADNOC) will follow Kuwait Petroleum which was done at a record high,” said a trader, referring to the recent term contract locked in by Kuwait Petroleum Corp (KPC).

KPC agreed to sell term naphtha in early February, for April 2010-to-March 2011 supply, to buyers at a premium of $22/tonne (€16/tonne) to Middle East FOB quotes.

For ADNOC's current supply, between April 2009 and March 2010, the term price for pentane plus grade stood at a premium of $26.00/tonne FOB (free on board) while the term price for low-sulphur naphtha and splitter naphtha were at a premium of $24.50/tonne and a premium of $23.50/tonne respectively, they said.

The Asian naphtha market became depressed amid active peak cracker maintenance, as underscored by a weaker crack spread versus Brent crude at $122.60/tonne, a fresh three-month low. 

($1 = €0.73)

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By: Felicia Loo

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