Asia/Pacific News
Premium Up 36% in South Korea Fuel Deal
Thursday December 19, 2013
South Korea's Hyundai Oilbank will pay $15 per tonne above Singapore spot prices for 380 cst fuel oil from Japan's Mitsubishi Corp. in 2014, Reuters reports.
The premium for the 2014 deal is 36 percent higher than the one the parties agreed to for this year, which set a premium of $11 over Singapore spot quotes.
Mitsubishi Corp. will supply 60,000 tonnes of fuel to Hyundai Oilbank every two months at a southern port, plus 30,000 per month at a western port.
The South Korean supplier will use some of the fuel to supply Korea Gas Corp. (Kogas), which it is contracted to supply with 20,000 tonnes of bunker per month.
Hyundai Oilbank said early this year that it was working to increase bunker sales in South Korea.
