Mon 11 Apr 2011, 17:31 GMT

Saudi Arabia sells 90,000-tonne cargo


Fuel oil parcel is scheduled for loading at the end of this month.



Thailand's PTT is reported to have purchased a 90,000-tonne cargo of fuel oil for delivery in April from ExxonMobil.

The 700-centistoke (cst) parcel was sold at a discount of approximately $16 per tonne to Singapore spot quotes, on a free-on-board (FOB) basis, according to industry sources.

The cargo is scheduled for loading on April 27-29 from the Saudi Aramco Mobil Refinery (SAMREF) in Yanbu, an equally owned joint venture between Saudi Arabian Oil Company (Saudi Aramco) and Mobil Yanbu Refining Company Inc., a wholly owned subsidiary of ExxonMobil.

It is the oil major's second high-viscosity fuel oil cargo scheduled for loading in April after selling a similar-sized parcel to energy trading company Vitol at a discount of approximately $25.00-$27.00 per tonne to Singapore spot quotes, FOB.

ExxonMobil previously sold two 90,000-tonne cargoes for loading from Yanbu on March 6-8 and March 21-23 to Vitol and PTT at discounts of $16.00 per tonne and $17.00-$18.00 per tonne respectively.

Saudi Aramco also sold an 80,000-tonne cargo of its A961 180-cst grade, for loading on April 8-10 from its Ras Tanura refinery, to Westport at a discount of around $2.00 per tonne to Singapore spot quotes, FOB, down from a premium of around $6.00 for a 90,000-tonne cargo of A961 180-cst the previous month.

Aramco sold 90,000 tonnes of 180-cst to Shell at $10.00-11.00 per tonne to Singapore spot quotes, FOB. The cargo was scheduled for loading on April 7-9 from Jubail.

The four April-loading cargoes sold by ExxonMobil and Saudi Aramco brings Saudi Arabia's total fuel oil exports for the month to 350,000 tonnes so far. The figure is said to be below March's 705,000 tonnes, partly due to planned refinery turnarounds in the country.

The East Asian fuel oil market is expected to strengthen from the second half of April onwards amid low Western arbitrage inflows for the month totalling 2.9-3.0 million tonnes. The majority of the cargoes are due to arrive in the first half of April.

Meanwhile, demand for marine fuels from Fujairah - the Middle East's main bunkering hub - is expected to remain weak due to high fixed-price levels and high premiums charged to vessels calling at the region due to geopolitical tensions.


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