ADNOC seals July-Dec naphtha premiums at $17 to $20

ADNOC's most expensive grade is the Pentane (or paraffinic) set at $20 a tonne premium

  
Staff are seen at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018.

Staff are seen at the Panorama Digital Command Centre at the ADNOC headquarters in Abu Dhabi, UAE May 12, 2018.

REUTERS/Satish Kumar

SINGAPORE- Abu Dhabi National Oil Company (ADNOC) has finalised a 6-month naphtha contract at $17 to $20 a tonne above its price formula on a free-on-board (FOB) basis, people familiar with the matter said on Wednesday.

ADNOC's most expensive grade is the Pentane (or paraffinic) set at $20 a tonne premium, followed by low-sulphur grade (East refinery) at $18, low-sulphur grade (West refinery) at $17 and splitter naphtha also at $17.

ADNOC does not typically comment on its deals.

The premium levels for the July-December 2020 contract are almost similar to ADNOC's July 2019 to June 2020 term prices at $16 to $20.

But these second-half 2020 prices are about 26% to 32% lower versus the existing first-half 2020 premiums sealed in 2019. 

Despite the fresh term premiums being lower versus January to June 2020, trading sources said the levels are considered as high in a volatile environment where the coronavirus has inflicted huge damage to the global economy.

(Reporting by Seng Li Peng; Editing by Shailesh Kuber) ((lipeng.seng@thomsonreuters.com; +65 6870 3086; Reuters Messaging: lipeng.seng.thomsonreuters.com@reuters.net))

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