SINGAPORE: Oil traders Gunvor and Vitol placed the lowest offers for a tender by Pakistan State Oil Co seeking 600,000 tonnes of gasoline for delivery over May to August, industry sources said.

Gunvor placed the lowest offer for 10 out of 12 cargoes while Vitol placed the lowest offer for two other cargoes, they said.

PSO sought six cargoes of 50,000 tonnes each of 87-octane gasoline for delivery over May 25 to June 30 and six cargoes of 50,000 tonnes each for delivery over July 1 to Aug 15.

Vitol and Gunvor placed the lowest offers for the cargoes loading over May to June at premiums ranging from $98.73 a tonne over Middle East naphtha quotes to $108.70 a tonne, on a free-on-board (FOB) Sohar or Fujairah basis, one of the sources said.

Gunvor placed the lowest offers for all six cargoes to be delivered over July to August at premiums ranging from $91.70 a tonne to $99.50 a tonne, the source added.

The tender, which closed on May 18, is valid until May 23.

Separately, Pakistan State Oil cancelled a gasoil tender seeking 50,000 tonnes of 0.5 per cent sulphur gasoil for delivery into Karachi over May 22 to May 24 as only one offer was received, a second source said.

The company will evaluate its supply and demand situation and decide if it will re-issue the tender, the source said.

Pakistan’s oil product requirements are spiking during the summer due to increasing temperatures as use of oil for power generation increases, causing gasoline use in smaller power generators to go up, sources have said.

Published in Dawn, May 22nd, 2015

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