Kuwait offers more spot naphtha for Sept
KPC and other Gulf suppliers are increasingly turning to the spot market for support-says traders.
August 23, 2010 1:06 by Reuters
Kuwait Petroleum Corp (KPC) has offered an additional 74,000 tonnes of naphtha for September loading, bringing its total spot exports next month to more than 200,000 tonnes, traders said on Monday.
The extra barrels come at time when market sentiment is strong, though traders cautioned that this would not last.
Short-coverings and ADNOC taking two condensate splitters down from October for maintenance have supported market sentiment, but it remains to be seen if the strength can be sustained in a already well-supplied market.
KPC’s new tender — which closes on Tuesday — comprises 50,000 tonnes of full-range grade, and 24,000 tonnes of light grade for Sept. 24-30 loading.
It had previously sold more than 140,000 tonnes of naphtha for first-half September loading at premiums of around $6.00-$7.00 a tonne to Middle East quotes on a free-on-board (FOB) basis.
The major Gulf supplier does not usually sell this much of spot naphtha in a month, but traders said KPC and other Gulf suppliers are increasingly turning to the spot market for support after some of their buyers decided to drop, or reduced term volumes due to high prices.
(Reporting by Seng Li Peng; Editing by Ramthan Hussain)