IOC sells two naphtha lots May at higher premium

Singapore, Apr 11: Indian Oil Corp. (IOC) has sold two naphtha lots for early-May loading at higher premiums than its previous sales, traders said on Wednesday.

IOC sold one 30,000-tonne parcel to Emirates National Oil Co. (ENOC) at around a tonne above the Platts and Argus price formula, on a free-on-board (FOB) basis, for loading on May 3-5 from the port of Kandla on the west coast, traders said.

It also sold one lot of between 27,000 and 29,000 tonnes to Cargill at a tonne above the same price formula, FOB, for loading on May 11-13 from Dahej, they said.

IOC last month sold 30,000 tonnes of naphtha to Vitol at .20 a tonne above the same price formula, FOB, for loading on April 17-19 from Kandla. From Dahej, it sold 27,000-29,000 tonnes for April 21-23 loading to Japanese trading house Itochu Corp. but the price was not known.

IOC is also due to award a tender to export additional 84,000-88,000 tonnes of naphtha for May as the tender will close on April 17, with the validity remaining until April 18.

The Asian naphtha market has recently rallied due to supply shortages. Indian exports for May loading stood at about 480,000 tonnes so far, below the country's monthly average of 520,000 tonnes seen last year and lagged the country's April shipments of 580,000 tonnes.

Reuters