Indian naphtha premiums surge as Gulf, Russian supply tightens
Spot premiums for Indian naphtha exports have rebounded to levels last seen in late March, as tight supplies from the Middle East and Russia and renewed concerns over U.S.-Iran tensions boosted demand from Far East buyers.
Indian state refiners Bharat Petroleum Corp. and Hindustan Petroleum Corp. sold about 63,000–65,000 tons (567,000–585,000 barrels) of naphtha, used as a feedstock for making petrochemicals like plastics and pharmaceuticals, through tenders last week at premiums similar to late-March highs, multiple trade sources said on Monday.
BPCL sold 36,000–37,000 tons of naphtha at a premium of about $100 per ton to Middle East quotes on a free-on-board (FOB) basis for loading during July 30 and 31, two trade sources said.
HPCL sold about 27,000–28,000 tons of the light distillate at a premium of about $68 per ton to Middle East quotes on an FOB basis for loading during July 25 to 27, two separate sources said.
Premiums have jumped from just above $40 a ton the previous week.
Tight supplies from the Middle East and Russia have boosted demand for Indian naphtha from buyers in the Far East, a Mumbai-based trader said.
Oil companies typically do not comment on trades.
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