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Thu 14 May 2009, 10:41 GMT

Indian refiner sells 380-cst cargo


30,000-tonne parcel is scheduled for lifting in early June.

Refiner and bunker supplier Indian Oil Corporation Ltd. (IOC) has sold a 30,000-tonne cargo of fuel oil for loading next month, Reuters reports.

The state-owned firm is said to have sold the parcel of 380-centistoke(cst) fuel oil to oil major BP at a discount of $5-$6 per tonne to the IOC formula, on a free-on-board (FOB) basis.

The cargo is scheduled for loading from the southeastern port of Chennai on June 1-4, market sources said.

Last month Indian Oil sold a similar-sized cargo to BB Energy at a discount of $6 a tonne to the IOC formula, on a free-on-board (FOB) basis.

Previous to the sale, refineries had halted fuel oil exports in late March when production of bitumen was raised to meet rising demand from domestic infrastructure projects.

Refineries have now resumed exports of fuel oil following the start of the monsoon season, when there is a large drop in electricity usage from utilities and factories.

Before exports were halted, IOC had sold two 30,000-tonne 380-cst cargoes for loading on March 4-7 and March 20-23 to oil major BP and commodity trading firm Trafigura.

Both parcels were reportedly purchased at discounts of between $10.00 and $10.50 per tonne to the IOC formula, on a free-on-board (FOB) basis, at higher rates than last month's cargo sale.

Meanwhile, Essar Oil recently sold two 60,000-tonne cargoes of 180-cst fuel oil for loading on May 17-21 and May 30-June 3 from Vadinar to oil cargo trader and bunker supplier FAL Oil.

Sharjah-based FAL Oil was reported to have bought the parcels at around $6-$7 per tonne to Singapore spot quotes, FOB, or a premium of $2-$3 per tonne to Middle East spot quotes.

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