(Adds details)
By Jessica Jaganathan
SINGAPORE, Nov 3 (Reuters) - Kuwait Petroleum Corp (KPC) hasagreed to sell gasoil and jet fuel under long-term contracts for2017 at nearly half the premiums of what it sold in 2016,traders said on Thursday.
KPC has agreed to finalise its 2017 term contract to sell500ppm sulphur gasoil at a premium of 60 cents a barrel toMiddle East quotes, down from $1.15 for 2016, they said.
Buyers include Royal Dutch Shell, BP andTotal, traders said.
For jet fuel, KPC has agreed to a premium of 90 to 95 centsa barrel to Middle East quotes, down from 2016's $1.60. Buyersinclude Shell, BP, Total and Emirates National Oil Company(ENOC), they added.
Buyer details could not immediately be confirmed with therelevant companies.
KPC could not immediately be reached for comment.
Both oil products contracts are to be finalised on afree-on-board (FOB) basis, traders said.
Volumes and term buyers are consistent with currentcontracts, one of the sources said.
"Most term buyers were losing money as spot levels have beenmuch lower this year, so I think they are reluctant to payhigher (for 2017)," a Singapore-based industry source said.
The lower premiums for gasoil could also partly have beendriven by a drop in purchases by its long-standing term customerin Indonesia, traders said.
Over the first half of this year, Indonesia's state-ownedPertamina only imported 600,000 barrels of gasoil, in line witha drop in domestic demand after a biodiesel mandate, tradershave said. (Reporting by Jessica Jaganathan; Editing by ChristianSchmollinger/Keith Weir)
BP (BP.)
