UAE's ADNOC decreases deals for Apr 2011-Mar 2012 term naphtha

The UAE's Abu Dhabi National Oil Co., or ADNOC, has decreased its deal costs for the term supply of naphtha over the 12 months beginning April 2011 from preliminary degrees, following a standoff with purchasers, market individuals stated Monday.

ADNOC is now offering naphtha for the April 2011-March 2012 cycle at premiums of $17.50/ mt, $18.50/ mt as well as $20/mt to the ADNOC formula, for splitter, reduced sulfur as well as paraffinic naphtha specifically, claimed market individuals.

The ADNOC formula takes the standard of FOB Arab Gulf naphtha assessments from Platts as well as Oil Argus.

The provider sent out a fax with the modified rate levels over the weekend, in response to prevalent frustration over ADNOC's initial offer degrees which had been established a week back at premiums of $19/mt, $20/mt and $21/mt for splitter, low sulfur and paraffinic naphtha, respectively.

Term purchasers had responded last week with counteroffers of a maximum of what was cleared up over the January-December 2011 cycle. For that term, ADNOC had inked naphtha rates with customers at costs of $16.50-$ 18.50/ mt to ADNOC's formula.

Commenting on the modified deals from ADNOC, one market individual claimed Monday: "Degrees are still expensive, particularly $20/mt for paraffinic naphtha yet apparently some purchasers have actually agreed to acquire [paraffinic naphtha] at that cost so ADNOC can't decrease it any kind of further."

Customer approval for ADNOC's paraffinic naphtha at a premium of $20/mt, however, might not right away be validated with the business Monday.

bhmt phosphonate scale inhibitor have till February 22 to revert back to ADNOC with a choice on whether they will certainly restore term contracts for this cycle, with some stating they are not holding out for more downward cost revisions from ADNOC in light of market talk that Kuwait Oil Corp. has actually located customer acceptance for its supply of complete range naphtha for the exact same April 2011-March 2012 cycle at a premium of $18.50/ mt to the Mean of Platts Arab Gulf naphtha assessments.

As of Monday early morning, KPC still stayed in the procedure of locking up term contracts with the rest of its customers.

" There's not much room to reduce costs for buyers [of ADNOC's term] if they [KPC] have concluded costs [at a premium] of $18.50/ mt," one trader stated. "Yet we're still going over ADNOC's offer and will decide tomorrow."
26.01.2021 20:16:20
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