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Indian refiner Essar Oil has offered 360,000 tonnes of 180-centistoke (cst) for sale through private negotiations, Reuters reports.

The company, which up until now has only sold fuel oil cargoes via tender, is understood to be in direct talks with a number of parties to sell six 60,000-tonne cargoes of 180-cst. A deal is expected to be agreed before the end of this week.

Essar's refinery in Vadinar is able to produce 10.5 million tonnes per annum and is ideally located on India's West Coast in close proximity to the crude rich Gulf States. The company sells around 120,000-180,000 tonnes of fuel oil a month via spot tenders.

Vadinar is an all-weather deep-draft natural port and over 60 percent of India's crude imports land in and around this region.

Asian fuel oil market fundamentals have remained relatively firm in recent weeks as demand for bunker fuel remains steady in Singapore and the Middle East.

Sales of marine fuel in the city-state rose by 111,900 tonnes in July 2009 compared to the previous month as shipping activity continues to improve and Singapore's rates remain competitive compared to other regional ports.

Demand continues to hold firm in the Middle East region due to rising domestic power generation during the peak summer season. Power generation requirements in East Africa have also been drawing product away from the Middle East.