26 July 2012 08:40 [Source: ICIS news]
SINGAPORE (ICIS)--Saudi Aramco is currently in discussions to sell a second 55,000 tonne naphtha cargo for September delivery, to be priced on Japan CFR (cost & freight) quotes, a source close to the company said on Thursday.
At the initial stage of discussion A180 naphtha was offered, which would be loaded from Ras Tanura. However, the Saudi oil giant has the flexibility to change the grade and the port of loading, as subject to the customer’s request, the source added.
“We may change the naphtha grade or the port to match [the] customer’s need, but this is not guaranteed,” he said.
The pricing formula will be concluded on a Japan CFR basis – on condition that there is a back haul attached to the shipment of the cargo, in order to optimise the freight cost.
“The company has started pricing cargoes on CFR basis so as to diversify the type of transactions,” the source added.
The negotiations for the second naphtha cargo will likely be completed over this weekend or next week, the source added.
Saudi Aramco did not offer any spot material for August because about 600,000 tonnes of spot product was sold for July delivery, the source added.
($1 = €0.82)
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