SINGAPORE: Pakistan State Oil bought 830,000 tonnes of fuel oil for delivery over August and September in an open tender, traders said on Wednesday.

Increased power demand over the summer season has pushed the state-owned company to buy more fuel oil, a source familiar with the matter said.

PSO’s latest purchase adds to an earlier award of 890,000 tonnes of fuel oil for June-August delivery.

Of the 830,000 tonnes, 650,000 tonnes were of the high sulphur grade with a viscosity of 180-centistoke.

Five of the HSFO 180-cst cargoes, each 65,000 tonnes, were awarded to Bakri Trading at premiums ranging $28.88-29.99 a tonne to Arab Gulf quotes, free-on-board (FOB) Fujairah, United Arab Emirates.

Vitol and Swiss Singapore will each supply two similar-sized cargoes, with premiums ranging $29.50-30.49 a tonne and $27.75-29.77 a tonne to Arab Gulf quotes, FOB Fujairah, respectively.

PSO will receive the tenth cargo from PetroChina at a premium of $30.25 a tonne to Arab Gulf quotes, FOB Fujairah.

BB Energy will sell one 60,000-tonne cargo of the low-sulphur fuel oil grade to PSO, while Vitol will sell two similar-sized parcels.

The LSFO spot contracts were concluded in premiums ranging $114.50-115.50 a tonne to Arab Gulf quotes, FOB Singapore/Malaysia, traders said.—Reuters

Published in Dawn, July 24th, 2014