SINGAPORE- Abu Dhabi National Oil Company has kicked off 2019 naphtha term talks and set its offers at premiums of $15 and higher to its price formula on a free-on-board (FOB) basis, traders said on Wednesday.
These were at least 3 to 10 percent higher than its 2018 contract prices.
ADNOC quoted its paraffinic naphtha above $18, with low-sulphur grade from its West refinery at $15 and low-sulphur grade from its East refinery and splitter naphtha grade at more than $15, respectively.
These high offers took some traders who track the light distillates market by surprise because market conditions are a lot weaker compared with last year's when ADNOC was renewing the 2018 contract, they said.
Asia's naphtha crack value, at under $40 a tonne on Wednesday, was not only the lowest seen in more than two years, but it was down by 71 percent compared with the same period last year, Reuters data showed.
It was unclear if ADNOC would reduce the offers but talks are ongoing.
(Reporting by Seng Li Peng, editing by Louise Heavens) ((firstname.lastname@example.org; +65 6870 3086; Reuters Messaging: email@example.com))