18 February 2011 05:55 [Source: ICIS news]
SINGAPORE (ICIS)--Kuwait Petroleum Corp (KPC) has reduced its term naphtha price offer to customers in ?xml:namespace>
The offer for full-range naphtha dropped to a premium of $18-19/tonne for Middle East quotes FOB (free on board), down from a premium of $21/tonne (€16/tonne), they said.
“The Asian market is bearish because of huge arbitrage cargoes from the West. Demand is weak,” a trader said.
In a sign of a bearish market, Asian naphtha crack spread versus Brent crude futures slumped to a near five-month low of $104.60/tonne on Thursday, ICIS data showed.
The Asian market was mired in a supply deluge as the peak cracker turnaround season started this month.
In its most recent term deal, KPC agreed to sell naphtha for December 2010-November 2011 lifting at a premium of $12/tonne to Middle East quotes FOB and light naphtha at a premium of $13/tonne to
KPC’s August 2010-July 2011 naphtha term contract was settled at
Meanwhile, the term premiums for its April 2010–March 2011 naphtha contract were at market quotes plus $22/tonne.
($1 = €0.74)
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