Aramco Trading Company (ATC), an affiliate of Saudi Aramco, purchased 70,000 tonnes of naphtha from Indian Oil Corporation on October 4, 2019 at unprecedented premiums since 2013, Reuters reported.
ATC paid a premium to IOC price formula on Free-on-Board (FOB) basis in the mid-$40 per tonne range for a 35,000-tonne cargo scheduled for October 18-20 loading from Chennai and for a 35,000-tonne cargo for November 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 per tonne in 2013, according to Reuters data.
Following the attacks on Aramco’s facilities, ATC seeks to compensate the supply gap in the market, according to trade sources. Hence, ATC bought more than 120,000 tonnes of naphtha from Europe and about 130,000 tonnes from India.
ATC is the lead premier trading company in the Middle East. The company focuses on refined products and blending components emerging as a global player based on an efficient and exceptional strategy.