Abu Dhabi National Oil Company (Adnoc) has cut splitter naphtha exports volumes for January-February lifting by around 10 per cent on lower condensate splitter runs, compounding Asia's supply woes, said traders.
It also deferred some shipments to Asian customers, they said, coming at a time of disruptions to supplies from other Middle Eastern producers, which are keeping the market supported along with robust demand for the first two months.
Cracks – premiums/ losses obtained from refining Brent crude into naphtha – rose to their highest in almost three weeks at $170.63 a tonne on Monday, before easing to $170.03 on Tuesday. Adnoc supplies around four million tonnes a year of splitter naphtha, made from condensates, and a total of about 2.6 million tonnes of low-sulphur and paraffinic grade.
The state-own company has the option to provide five per cent more, or less, of the contracted volumes with Asian buyers, depending on market fundamentals.
"But they had cut 10 per cent, instead of five per cent, of the contracted volumes," a trader said.
In some cases, cargoes were also postponed, although they will still be delivered within the same month, traders added. They attributed the lower supplies to decreased runs at its condensate splitters caused by limited feedstock.
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