SINGAPORE: India's Oil and Natural Gas Corp (ONGC) has sold a September naphtha cargo to Shell at about $7.00 above Middle East quotes on a free-on-board (FOB) basis, traders said, the lowest premium in about four years for a cargo sold out of Mumbai by the Indian seller.
ONGC sold the 35,000-tonne cargo for Sept. 22-23 loading from Mumbai late on Wednesday, the traders said.
Supplies have remained ample and the situation is unlikely to improve as a record volume of about 2 million tonnes of naphtha from Europe, the Mediterranean and the United States is set to arrive in Asia this month.
Sellers were initially hoping that the abundance of supplies would ease slightly in October, with refinery turnarounds in Europe and ADNOC shutting down its two condensate splitters, one after another starting in October and ending in January, for maintenance.
But traders said slow demand could offset any cutbacks in supplies.
The last time ONGC had received a premium lower than $7 for a cargo sold out of Mumbai was after it sold an October 2010 cargo to Gunvor at about $5.50 a tonne.
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