Asia Naphtha-India's Essar sells late Oct lot to Itochu
NEW DELHI/SINGAPORE, Oct 4 (Reuters) - India's Essar Oil has sold 35,000 tonnes of naphtha to Itochu for Oct. 26-30 loading from Vadinar at about $31-32 a tonne above Middle East quotes on a free-on-board (FOB) basis, with traders saying the premiums reflected a firm market.
The average premium for Indian cargoes being shipped last month was about $20 a tonne.
Strong gasoline demand in the West has affected the overall supply situation in Asia, as it will receive about 400,000-450,000 tonnes of European naphtha this month versus 800,000 tonnes last month.
Naphtha can be used for gasoline production.
Traders said Asia could need a few more cargoes from the West to offset the volatility in India's exports which have been unpredictable due to refinery maintenance and domestic gasoline demand.
(Reporting by Seng Li Peng and Nidhi Verma; Editing by Himani Sarkar)
Keywords: NAPHTHA INDIA/ESSAR