Pakistan State Oil (PSO) has bought via tender about 845,000 tonnes of high-sulphur fuel oil (HSFO) for May-July delivery from FAL Oil at prices lower than previous deals, traders said on Wednesday. PSO will buy the cargoes at a premium of $15 to $18 per tonne to Middle East spot quotes, on a cost and freight (C&F) basis, traders said.
The volumes bought included the fixed and optional cargoes sought in the tender. Last month, PSO bought nine 65,000-tonne HSFO cargoes from Bakri Trading for April-May delivery at a premium of $17 to $19 per tonne to Middle East spot quotes, C&F.
This compares with a premium of $20-$21 per tonne to Middle East spot quotes, C&F, for up to 1.04 million tonnes of HSFO from FAL Oil and Bakri for February-April delivery. Overall demand for fuel oil has weakened in line with falling industrial output and flagging economic growth, but there are pockets of strength in regional bunker demand, as falling rates prompt bargain-hunting among ship owners.