Aramco sells May Jubail lot to Vitol.Byline: Singapore Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. , the world's top oil explorer, has sold 90,000 tonnes of cracked 380-centistoke (cst) fuel oil from Jubail for lifting on May 12 to Vitol at similar discounts to previous deals, traders said. Vitol paid a discount of around $7 per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. to Singapore spot quotes, on a free-on-board (FOB FOB 1) adj. short for Free on Board, meaning shipped to a specific place without cost. 2) Friend of Bill (Clinton). (See: Free on Board) ) basis, for the cargo via private negotiations. This is similar to a discount of $7 to $8 a tonne that France's Total paid for a 40,000-tonne parcel, loading on April 28-30, also from Jubail. Total had previously purchased two 80,000-tonne 380-cst lots from Aramco for April 5-7 and March 20-24 lifting, also at around a discount of $8.00 per tonne, FOB. The Asian fuel oil market has strengthened over the last two weeks. The timespreads have flipped into backwardation Backwardation The theory that says futures prices will tend to rise over the life of a contract. Therefore the near-term contracts trade at a higher price than the longer-term contracts. Notes: This is the opposite of "contango. as sentiment firmed on the prospect of tighter supplies ahead. Fewer arbitrage arbitrage: see foreign exchange. arbitrage Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price barrels are expected to land in Asia in May -- falling about 18-20 per cent from April -- as European refiners slash capacity on poor margins. Middle Eastern supplies are also shrinking in line with the peak summer demand season, soaking up fuel oil for domestic power generation. -- Reuters Copyright 2008 www.tradearabia.com Copyright 2009 Al Hilal Publishing & Marketing Group Provided by Syndigate.info an Albawaba.com company |
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