SINGAPORE: Kuwait Petroleum Corp (KPC) has agreed to sell its 2016 term barrels for gasoil and jet fuel at lower premiums than current term levels, traders said on Monday.
The refiner agreed to finalise its 2016 term contract to sell 500ppm sulphur gasoil at a premium of $1.15 a barrel above Middle East quotes, down 8 percent from the $1.25 a barrel it achieved for its 2015 term deal, they said.
For jet fuel, KPC has agreed to seal its 2016 term deal at a premium of $1.60 a barrel above Middle East quotes, down 11 percent from 2015's term premium of $1.80 a barrel, with at least one buyer, they added.
Both oil products contracts are to be finalised on a free-on-board (FOB) basis, one of the traders said.
KPC could not immediately be reached for comment.
Supplies of middle distillates, which include gasoil and jet fuel, increased in the Middle East this year and could rise further next year as new refineries ramp up run rates, traders said.
Bahrain Petroleum Co (Bapco) and Abu Dhabi National Oil Co (ADNOC) are still negotiating to sell term barrels for diesel and jet fuel, traders said.
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