Saudi Aramco sells May Jubail lot to Vitol.
This is similar to a discount of $7 to $8 a ton that France's Total paid for a 40,000-ton parcel, loading on April 28-30, also from Jubail. Total had previously purchased two 80,000-ton 380-cst lots from Saudi Aramco for April 5-7 and March 20-24 lifting, also at around a discount of $8.00 per ton, FOB.
The Asian fuel oil market has strengthened over the last two weeks.
The time spreads have flipped into backward position as sentiment firmed on the prospect of tighter supplies ahead.
Fewer arbitrage 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.
Saudi Economic Survey. All rights reserved.
Provided by Syndigate.info an Albawaba.com company
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|Publication:||Saudi Economic Survey|
|Article Type:||Brief article|
|Date:||May 10, 2009|
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