Kuwait cuts term naphtha offers by 16.2pc to $28.50 a tonne
October 10, 2013 - 8:00:04 am
SINGAPORE: Kuwait Petroleum Corp (KPC) has slashed offers for its full-range naphtha in a 12-month contract starting in December by 16.2 percent to $28.50 a tonne to Middle East quotes on a free-on-board (FOB) basis, traders said on Thursday.
The sharp cut took some traders by surprise and was possibly a record cut in term offers by the Middle Eastern refiner, said one of the traders.
KPC's initial offer for the contract running from December 2013 to November 2014 was at $34 a tonne to Middle East quotes, nearly 26 percent higher than for the current contract.
KPC usually reduces its offers by $1 to $2 dollars a tonne as talks with its Asian buyers progress through the week.
But it took $5.50 a tonne off its initial offer due to strong buyer resistence as the market is currently awash with supplies from Europe, the traders said. (Reuters)