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Approximately 600,000-650,000 tonnes of fuel oil are expected to loaded for export from Saudi Arabia during the month of October, according to market sources.

Saudi Aramco is understood to have sold three A961 180-centistoke (cst) cargoes for loading from its 550,000 barrel-per-day Ras Tanura refinery this month.

Two of the 90,000-tonne parcels were sold to Sharjah-based trader FAL Oil and are expected to be sold on to Pakistan State Oil Company Ltd. for use in the country's utility market.

A961 is said to be more suited for supply into Pakistan rather than the local Fujairah bunker market. National ol marketer Pakistan State Oil is a regular buyer of fuel oil from the Middle East, purchasing between 500,000 to 600,000 tonnes a month of 120-180 cst fuel oil for power generation.

A third cargo of A961, also from the Ras Tanura facility, was sold to Japan's Petrosummit for use as blendstock for the Singapore bunker market.

The parcels are understood to have been sold at discounts of over $3 per tonne to Singapore spot quotes, on a free-on-board (FOB) basis.

Meanwhile, a 380-cst lot from Saudi Aramco's joint-venture Sasref refinery in Jubail, has also been sold in private negotiations.

Fuel oil exports from Saudi Arabia have been rising in recent weeks following the peak summer demand period. Loading volumes in September increased by approximately 200,000 tonnes to 500,000-550,000 tonnes, up from around 300,000-350,000 tonnes in each of the previous two months.

Currently around 350,000-400,000 tonnes of fuel oil have been sold or offered so far during the month of October.

Demand has been weak in both the Middle East and Singapore in recent weeks with players unwilling to take risks during a period of poor trading margins.

The Asian market has also been dampened by heavy fuel oil arrivals from the West. October volumes are at four-year highs of around 3.9 million tonnes.