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India's Hindustan Petroleum Corp (HPCL) has sold a 25,000 to 30,0000-tonne fuel oil cargo for loading October, according to market sources.

The 380-centistoke (cst) parcel for loading from HPCL's Vizag (or Visakhapatnam) terminal between October 25th and 27th has reportedly been sold to Emirates National Oil Co (ENOC). The deal price, however, has not been disclosed.

The fuel oil cargo is likely to be transported to Singapore for use in the local bunker market, according to market traders. Suppliers in the marine fuels market there have been reporting stock shortages recently, which has lead to a number of companies this week not quoting on some or all products, particularly 180-cst, which has been in short supply for some weeks.

HPCL is also said to have offered two more 30,000 to 40,000-tonne 380-cst cargoes for loading from HPCL's Mumbai terminal next month. The first parcel is schdeuled for loading from October 3rd to 5th and the second from October 21st to 23rd. The tenders are scheduled to close on Thursday, Reuters reports.

The Asian fuel oil market remains tight due to the lack of fuel oil exports emanating from Saudi Arabia and Iran, two of the region's major exporters.

Saudi Arabia recently decided not to sell any spot fuel oil after its peak summer demand season, due to rising requirements from domestic utilities and new secondary refining units.

Fuel oil exports from Iran have also reportedly been cut as the country builds stocks ahead of winter and following a heavy fourth-quarter maintenance season.

The shortage in supply has lead to Asian fuel oil cracks reaching their highest in more than four years last week, according to market sources. However, this is expected to change next month with a predicted rise in arbitrage volumes from the West.