ADNOC finalizes 2018 gasoil, jet fuel term with at least 1 buyer
SINGAPORE (Reuters) — Abu Dhabi National Oil Company (ADNOC) has finalized its 2018 gasoil and jet fuel supply term contracts with at least one buyer, five traders that participate in the market said on Wednesday.
It has agreed for its gasoil with a sulfur content of 10 parts per million (ppm) for 2018 to be sold at a premium of 60 cents a barrel to Middle East 10 ppm sulfur gasoil quotes, they said.
This is the first time the refiner’s contract will be priced off the new benchmark to be adopted by oil price agency Platts next year, the traders said.
Previously, ADNOC’s gasoil contracts were priced off the 500 ppm sulfur gasoil quotes.
ADNOC has also agreed for its 2018 jet fuel term contracts to be priced at a premium of 85 cents a barrel to Middle East jet fuel quotes, the traders added.
Typically, when one buyer agrees to a premium, other companies will be asked to follow suit.
An ADNOC spokesman said the company is in the process of finalizing its 2018 term contracts for gasoil and jet fuel.
ADNOC finalized its 2017 term contracts at a premium of $1.30/bbl above 500 ppm sulfur gasoil quotes for its diesel and a premium of $1/bbl for its jet fuel.
Reporting by Jessica Jaganathan in SINGAPORE, additional reporting by Maha El Dahan in DUBAI; Editing by Christian Schmollinger
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