Oil company's offers are similar to those made by ADNOC earlier this month
Saudi Arabian Oil Co is poised to offer naphtha for delivery to Asian buyers in the first half of 2011 at around $15 to $17 a metric ton above the company’s benchmark formula, two people who participate in the market said.
The company, also known as Saudi Aramco, is seeking to sell Rabigh grade naphtha at $17 a ton, Jubail grade at $16 and A-310 grade at $15, the people said, who asked not to be identified because the talks are confidential.
Saudi Aramco sells naphtha free on board, requiring buyers to pay shipping costs. Naphtha, distilled from crude oil, is a raw material for gasoline, ethylene and chemicals. The talks are still ongoing, the people said.
Aramco’s offers are similar to those made by Abu Dhabi National Oil Co earlier this month for naphtha supplies from January to December 2011.
The UAE company, known as Adnoc, offered to sell its Pentane Plus grade of naphtha at $18.50 a ton above benchmark Middle East prices, three people who received notification said on Nov 11. Low Sulfur grade was offered at a premium of $17.50 a ton and Splitter grade at $16.50 a ton, the people said then.
For supplies in the six months to December this year, Saudi Aramco offered Rabigh grade naphtha at $21 a ton above its benchmark and Jubail at a premium of $19 a ton, traders said in May. Jeddah grade was sold at $17 a ton, A-310 grade at $19 a ton and A-180 grade at $20 a ton above the benchmark, the traders said.