October 7, 2019 / 10:10 AM / 8 days ago

Aramco buys more Indian naphtha; IOC premiums at six-year high

FILE PHOTO: Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. REUTERS/Hamad I Mohammed

SINGAPORE (Reuters) - Saudi Aramco’s trading arm bought 70,000 tonnes of naphtha from Indian Oil Corp (IOC.NS) on Friday at premiums not seen since 2013 as it seeks to plug a supply gap following Sept. 14 attacks on its facilities, trade sources said on Monday.

Aramco Trading Company (ATC) paid a premium to IOC price formula on a free-on-board basis in the mid-$40 per tonne range for a 35,000-tonne cargo scheduled for Oct. 18-20 loading from Chennai and for a 35,000-tonne cargo for Nov. 3-5 loading from the same port.

These were the highest premiums IOC has fetched for naphtha sold out of Chennai since it sold a cargo to Unipec at a premium of about $55 a tonne in 2013, Reuters data showed. [NAP/TENDA]

Since the attacks, ATC has bought more than 120,000 tonnes of naphtha from Europe and about 130,000 tonnes from India, including the latest purchase from IOC and a previous deal with Hindustan Petroleum Corp Ltd (HPCL.NS).

It also has cargoes from Egypt but these were mostly locked in before the attacks.

Reporting by Seng Li Peng; editing by Jason Neely

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