SINGAPORE, Sept 21: Asian fuel oil prices surged to near record-highs on Friday, as cargo premiums and crack spreads strengthened, amid heavy demand from Vietnam and Pakistan in a tightly supplied market.

Vietnam is seeking higher volumes for its fourth-quarter tender, while Pakistan’s requirement for the October-January cycle is steady.

“I think the market has tilted a little more towards the bullish side on news of the strong demand from Vietnam and Pakistan, especially as there is still no end in sight with regards to the supply problems in the Middle East,” a Singapore-based Western trader said.

The fuel oil swaps market saw heavier trade with 85,000-95,000 tons mainly of front-month October 380-cst contract done at $397.00-$397.75 a ton.

Boosting the market further, Pakistan State Oil (PSO) issued a tender seeking up to 930,000 tons for October-January delivery, steady to volumes from the previous three-month import cycle amid a tight Middle East market, its main supply source.

—Reuters