February 06, 2007	Tuesday	Muharram 16, 1428

SINGAPORE, Feb 5: Pakistan State Oil bought 570,000-650,000 tons of February-April delivery high-sulphur fuel oil at higher prices via its regular three-monthly tender, a company official said on Monday.

The firm bought six firm parcels and four optional lots of 125-180-centistoke (cst) fuel oil, of 55,000-65,000 tons each, for delivery to its Port Qasim terminal in Karachi, on a cost-and-freight (C&F) basis, from Middle East trader Bakri.

The first two firm parcels, for delivery during Feb 13-15 and Feb 25-27, and the other four lots, for February-April delivery, were done at premiums of $16.89-$23.64 a tonne to Middle East spot quotes, C&F.

The four optional cargoes, for March-April deliveries, were bought at premiums of $16.89-$18.89 a tonne to Middle East spot quotes, C&F. The volumes were also about 25-30 per cent more than its requirements over the same period last year as some new power plants, mainly oil-fired thermal units, come onstream.

Pakistan's demand for oil, which accounts for 31 per cent of its energy needs, is expected to grow to 32.51 million tons in 2015, up from the current 16.8 million tons.

PSO last bought eight firm parcels and four optional stems, totalling 440,000-660,000 tons for December-February delivery, from Middle East traders Bakri and FAL Oil at premiums of $11.00-$22.00 a tonne to Middle East spot quotes, C&F.

The higher prices were due to a tight market this month as Western inflows to East Asia were delayed by weather-related problems, increasing demand for Middle East barrels, the main supply source into Pakistan.

Most of February's 2.3-2.4 million tons of Western supplies are expected to land in East Asia in the second-half of the month, with only about 30 per cent expected in the first-half.

Middle East suppliers had also been keen to sell their barrels eastwards, rather than to the West, due to higher premiums. Oil giant Saudi Aramco, for example, has sold 330,000 tons of January/February-loading spot cargoes, up from 250,000 tons during the same period in 2006.—Reuters