Saudi Aramco raises premiums for most second-half naphtha exports

May 18 | Updated: May 19 2006, 05:55am hrs
Saudi Aramco, the worlds biggest oil company, increased the premium to benchmark prices for most of the naphtha it would export in the second half of this year, said traders involved in negotiations.

Saudi Aramco raised the premium for its Rabigh naphtha to $16.50 a metric tonne from $14.50 a tonne in the first half of this year, said the traders who asked not to be identified. The premium for Jubail naphtha was increased to $14.75 from $13, and A-310 naphtha from Ras Tanura was concluded at a premium of $12.50 from $10.

Saudi Aramco, based in Dhahran, Saudi Arabia, maintained the premium for its most expensive naphtha, the A-180 grade, at $18 a ton above the benchmark price. Saudi Aramco held talks with buyers in London this week. Saudi Aramco officials declined to comment.

The premium for the A-180 grade was kept unchanged because of rising supply, while the premiums for the other naphtha were higher because of increased demand, traders said.

The cargoes are sold on a free-on-board basis, which means the buyer will pay for any shipping costs to the destination, and there is no charge to the buyer for delivery to the vessel at the loading port.

Saudi Aramcos benchmark price is calculated from the average assessments of the product in Japan by oil-pricing services Platts and Argus Media.

Reuters