SINGAPORE (Reuters) - Mangalore Refinery and Petrochemicals Ltd’s naphtha sales premium has slumped to the lowest in over a year as the market was awash with supplies, a trader who tracks the fuel said on Thursday.
The Indian refiner sold 35,000 tonnes of naphtha for Nov 10-12 loading from New Mangalore late on Wednesday to oil major BP at premiums of about $6 to $7 a tonne to Middle East quotes on a free-on-board (FOB) basis.
This was down by about half versus the average of $12.75-a-tonne premium the state-owned refiner had garnered for two cargoes sold last month.
The fresh premium was also the lowest that MRPL has received for its naphtha since September 2017.
MRPL and BP do not typically comment on their deals.
Reporting by Seng Li Peng; Editing by Sunil Nair