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) ((firstname.lastname@example.org; +65 6870 3086; Reuters Messaging: email@example.com))