SINGAPORE: Abu Dhabi National Oil Co (ADNOC) has cut the price on offers for three of its naphtha grades in a one-year contract starting in August to around $29.50 to $31.00 a tonne to its own price formula on free-on-board (FOB) basis, traders said on Tuesday.
Its splitter grade was pegged at about $29.50 a tonne, the low sulphur grade at $30 and pentane grade quoted at $31 a tonne.
The premiums were around 16 percent lower than in its term deal for the three grades lifting May 2013 to April 2014.
Traders said ADNOC probably took its cue from Kuwait, which in the first week of June sealed a term deal for August 2013 to July 2014 with Asian buyers at $31 a tonne to Middle East quotes on a FOB basis for its full-range grade and $32 a tonne for its light grade.
Naphtha sentiment had weakened at the start of June following an exodus of European naphtha to Asia.
But demand has picked up in the past few days as costlier alternative feedstock liquefied petroleum gas (LPG) has pushed buyers to rely on naphtha. (Reuters)
