ADNOC resumes naphtha exports via alternative Oman route

NEW DELHI: Asia’s naphtha prices tumbled to their lowest since early March as the Abu Dhabi National Oil Co (ADNOC) resumed exports in May via the Omani port of Sohar, traders said, establishing an alternative route that could ease the supply crunch caused by the US-Israeli war on Iran.

ADNOC halted exports of about 1 million metric tons per month of the petrochemical feedstock from its Ruwais refinery in April after the war curbed shipping via the Strait of Hormuz.

The United Arab Emirates producer resumed exports last month by deploying tankers to bring cargoes from the refinery inside the Gulf before transferring them to other tankers at Sohar port for export to Asia, a process known as ship-to-ship transfers.

ADNOC’s workaround provides an alternative supply route for buyers reluctant to risk ships passing through the strait, allowing more of the oil product to reach Asia.