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Saudi Arabian refiner Saudi Aramco has sold a cargo of 380-centistoke (cst) fuel oil for early-August delivery, according to market sources.

The 80,000-tonne parcel is reported to be destined for Singapore, with local supplier Singapore Petroleum Corp paying a premium of $3-4 per tonne to Singapore spot quotes, on a free-on-board basis, traders said.

The A962 cargo is said to be scheduled for loading on August 9th from the Red Sea port of Rabigh.

Aramco's deal price with Singapore Petroleum reflects strengthening market fundamentals and the expectation that fuel oil supplies will remain tight for the rest of the year on reduced refinery runs, a spillover from a firm Middle East market, and steady demand from the Asian marine fuels sector, the product's largest outlet.

India, for example - a major exporter of fuel oil - has seen exports fall in recent weeks, largely due to production cuts at local refineries. This is despite the fact that during the monsoon season domestic consumption and asphalt demand falls, usually prompting a rise rather than a decline in exports.

Last week, Aramco sold a 380-cst parcel for August 9 loading from Jubail to an unnamed party at near parity to Singapore spot quotes, FOB.

The price negotiated was higher than the $4.50 per tonne to Singapore spot quotes, FOB, negotiated with Shell for a Jubail cargo due to be loaded on July 27.

Aramco previously sold a cargo of A962 for July 20-21 loading to oil major Total at a discount of between $1-$2 per tonne to Singapore spot quotes, FOB.

This compares with a discount of around $6.00 per tonne to Singapore spot quotes, FOB, Japan's Itochu paid for an A962 cargo loading from Rabigh on April 19-21.