SINGAPORE - Abu Dhabi National Oil Co (ADNOC) has set its first-half 2020 naphtha offers at $25 to $29 a tonne above its own price formula on a free-on-board (FOB) basis, reflecting a spike of at least 80% versus 2019 contract prices, industry sources said on Friday.
ADNOC quoted offers for paraffinic naphtha for January to June loading next year at premiums of $29, followed by low-sulphur grade from its East refinery at $28, low-sulphur grade from its West refinery at $25 and splitter naphtha at $27 a tonne.
Buyers have until early next week to decide, the sources said. Typically, buyers make a counter offer, which is then reviewed by ADNOC.
The current offers are sharply higher compared with 2019 premiums buyers and ADNOC had settled at $12 to $16 as supplies had recently tightened.
A drone attack on Saudi Arabia's oil fields on Sept. 14 resulted in Saudi Aramco buying naphtha from Europe and India to plug a supply gap. O/NAPARB
Supplies further tightened due to heavy refinery maintenance and strong demand.
However, fundamentals have started to weaken in the last few days as buyers shunned the costly naphtha feedstock in view of bad petrochemical margins.
(Reporting by Seng Li Peng; editing by Uttaresh.V) ((email@example.com; +65 6870 3086; Reuters Messaging: firstname.lastname@example.org))