SINGAPORE, Jan 13: Pakistan State Oil (PSO) has bought up to three fuel oil cargoes totalling 165,000 tons for January and February delivery from Middle East trader Bakri Trading, industry sources said on Friday.

The first parcel, a firm 180-centistoke (cst) cargo, totalling 55,000 tons, for Jan 17-19 delivery to the Port Qasim in Karachi on a cost-and-freight (C&R) basis, was done at a premium of around $23 a ton to Middle East spot quotes.

Two other optional parcels, for second-half January and February deliveries of the same size and to the same destination, were done at premiums of $24-$25 a ton.

PSO last bought four similar cargoes, for November and December deliveries, from Middle East traders FAL Oil and Bakri Trading at higher premiums.

Bakri sold two 180-cst cargoes, for deliveries during Nov 1-3 and Nov 8-10 to the Port Qasim, at premiums of $28 a ton and $29.33 to Middle East spot quotes, C&R.

Fellow trader FAL sold a 125-cst parcel and a 180-cst lot, for November and December deliveries, at premiums of $32.79 a ton and $29.98, respectively.

Traders said the difference in the transaction levels were mainly due to freight rates having eased since the last purchase and ample fuel oil supplies in January.

The requirement is expected to be met by supplies from the Middle East, which has cheaper freight to Pakistan compared to Singapore.

Pakistan is expected to buy 25 per cent more fuel oil for this financial year ending in July, or an increase of up to one million tons, due to increased demand from the power sector.

Demand for power in 2005 is expected to be at 15,000-16,000 megawatts, up 858 mw from 2004. The country’s total power generation capacity stands at 20,000 mw, of which 39 per cent is generated by fuel oil.—Reuters