Kuwait Petroleum Corp (KPC) has offered a total of 74,000 tonnes of naphtha for first-half September loading, at a time when spot offers for next month's cargoes from the Middle East have slowed, traders said on Monday. KPC has offered 50,000 tonnes of full-range naphtha, and another 24,000 tonnes of light grade in a tender that closes on August 3, with bids to stay valid until August 4.
UAE's ADNOC, which sold more than 200,000 tonnes of spot naphtha for August loading, was in talks with buyers in the last two weeks for supplies from October 2010-September 2011 at premiums of $11.50-$12.50 a tonne to its own price formula on a free-on-board (FOB) basis.
"That could have caused them to hold back spot offers," said a trader, referring to ADNOC's supplies. Middle Eastern suppliers, including KPC, have pushed out large amounts of spot volumes for July-August loading after failing to sell their cargoes through term contracts because of high prices.
KPC had earlier sold more than 74,000 tonnes of naphtha for August loading, with some to Glencore and Vitol at a discount. Cracks, the premiums/losses obtained from refining Brent crude into naphtha, fell to $80.93 a tonne premium on Friday, after hitting a one month high the day before at $85.10 a tonne premium.
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