PHOTO
(Adds details)
By Jessica Jaganathan
SINGAPORE, Nov 16 (Reuters) - Bahrain Petroleum Co (Bapco) has sealed 2017 naphtha term contracts with its Asian customers at a premium of about $8 a tonne to Middle East quotes, lower than the current term, three traders said on Wednesday.
The premium was about 40 percent lower than its 2016 term premium of $13.75 a tonne, but higher than term contracts finalised by Kuwait Petroleum Corp and Abu Dhabi National Oil Company, traders said.
The cargoes were sold on a free-on-board (FOB) basis.
Overall volumes and details of buyers were not clear.
Bapco could not immediately be reached for comment on the matter.
The Middle Eastern refiner had initially offered the cargoes at a premium of $10 a tonne but later lowered the offer, a Singapore-based naphtha trader said.
"Not all existing buyers have accepted and some people may have dropped the term," he added. This could not immediately be confirmed.
While the 2017 term premium is lower than 2016's term contracts, traders had anticipated the levels to be closer to those negotiated by KPC and ADNOC, a second trader said.
KPC sealed its December 2016 to November 2017 naphtha contract at a premium of about $4 a tonne to Middle East quotes, while ADNOC negotiated its 2017 term contracts at premiums of $6 to $8 a tonne.
With naphtha crackers running at maximum capacity ahead of demand for plastics during Christmas and the New Year, spot prices have been edging higher, the trader said.
(Additional reporting by Florence Tan; Editing by Sherry Jacob-Phillips and Michael Perry) ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net))
By Jessica Jaganathan
SINGAPORE, Nov 16 (Reuters) - Bahrain Petroleum Co (Bapco) has sealed 2017 naphtha term contracts with its Asian customers at a premium of about $8 a tonne to Middle East quotes, lower than the current term, three traders said on Wednesday.
The premium was about 40 percent lower than its 2016 term premium of $13.75 a tonne, but higher than term contracts finalised by Kuwait Petroleum Corp and Abu Dhabi National Oil Company, traders said.
The cargoes were sold on a free-on-board (FOB) basis.
Overall volumes and details of buyers were not clear.
Bapco could not immediately be reached for comment on the matter.
The Middle Eastern refiner had initially offered the cargoes at a premium of $10 a tonne but later lowered the offer, a Singapore-based naphtha trader said.
"Not all existing buyers have accepted and some people may have dropped the term," he added. This could not immediately be confirmed.
While the 2017 term premium is lower than 2016's term contracts, traders had anticipated the levels to be closer to those negotiated by KPC and ADNOC, a second trader said.
KPC sealed its December 2016 to November 2017 naphtha contract at a premium of about $4 a tonne to Middle East quotes, while ADNOC negotiated its 2017 term contracts at premiums of $6 to $8 a tonne.
With naphtha crackers running at maximum capacity ahead of demand for plastics during Christmas and the New Year, spot prices have been edging higher, the trader said.
(Additional reporting by Florence Tan; Editing by Sherry Jacob-Phillips and Michael Perry) ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net))
