Indian Oil Corp Ltd (IOC) sold about 35,000 tonnes of June naphtha at premiums of about $43.50 per tonne to its own formula on a free-on-board (FOB) basis, taking traders by surprise as most were expecting lower premiums in view of the weaker market.
IOC sold the cargo for June 4-6 loading from Chennai port on late Tuesday. The buyer's identity could not be confirmed, but traders said it could be PetroChina Co Ltd .
"The market rate for spot cargoes lifting from India next month should be within the $30s a tonne level," said a Singapore-based trader.
Traders said buyers were often willing to pay above market premiums just to secure cargoes to supply their own customers.
Asia had been grappling with an acute supply crunch since the start of the year due to refinery maintenance and outages but most units have since resumed operations and supplies are starting to increase.
IOC has an outstanding tender to sell a cargo for June 7-9 lifting from Kandla. The tender is to be awarded on Thursday.
Source: Reuters