July 16, 2002	Tuesday	Jamadi-ul-Awwal 5, 1423

SINGAPORE, July 15: Singapore physical fuel oil prices extended gains on Monday, supported by a rally in benchmark crude oil prices, low local inventories and aggressive bids by oil major BP Plc, traders said.

Traders dismissed lingering bearish talk of growing supply, betting on the accuracy of lower arb volume estimates.

Last week, traders and shippers cut their estimates of Western fuel oil headed for Asia to about 1.1 million tons in August, some 400,000 tons fewer than previously expected.

Instead, the market again focused on perceived rising demand from Chinese end-users amid tight supply.

China has bought some fuel oil, but it always needs more. The demand is there, said one trader with a Chinese firm.—Reuters