World News
IOC Sells 55K Tonnes of 180 cSt Fuel Oil at Wider Discount
State-owned refiner Indian Oil Corp (IOC) has sold 55,000 tonnes of 180 cSt fuel oil at a wider discount to Singapore prices than the previous such sale, Reuters reports.
It was speculated that the cargos, which come from India's West Coast for end-April loading, may be used for blending in Fujairah, a market that sources said has been facing a short-term supply shortage.
"The market is tight through the end of the month and we have seen the premiums for bunkers go up over the past two weeks," one trader said.
IOC sold about 30,000 tonnes of the fuel to PetroChina at a $10 per tonne discount to the Singapore benchmark, while the other 25,000 tonnes was sold at a discount of $11 per tonne.
The report said the last similar sale was done at a discount of $5 to $6 per tonne earlier this month.
IOC is India's largest company by sales with revenues of Rs.4,09,957 crore ($85,550 million) and profit of Rs.3,955 crore ($825 million) in the 2011-2012 year, according to the company's website.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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