BackMangalore Refinery sells Sept-loading fuel oil at higher price
Mangalore Refinery sells Sept-loading fuel oil at higher price
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Singapore: Mangalore Refinery & Petrochemical Ltd. (MRPL) has sold via tender 80,000 tonnes of September-loading fuel oil at higher prices on lower freight costs, traders said on Monday (13 August).
The 380-centistoke (cst) parcel, for loading on 27-29 September from the refiner’s New Mangalore terminal, was sold to Cargill International at a discount of $3.50-$4.00 a tonne to Singapore spot quotes on a free-on-board (FOB) basis, up from a $4.50-discount previously.
“The higher price is largely due to cheaper freight. The market is still firm but there are indications that it could come off a little in September due to more regional barrels," a Singapore-based Asian trader said.
MRPL last sold a similar parcel, for end-August loading, to Glencore at a discount of around $4.50 a tonne to spot quotes, FOB.
Regional inflows for September, particularly from the Middle East and India, have increased over the past week.
Indian volumes are at year-high levels with 300,000 tonnes sold or offered for September, above the monthly average of about 216,000 tonnes.
Middle East volumes have also spiked, with some 200,000 tonnes of August- and September-lifting cargoes offered by Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) in the market.
However, the downside is limited by low volumes of Western arbitrage inflows, currently with about 1.8-1.9 million tonnes fixed or booked for next month, below August’s eight-month low of 2.2-2.3 million tonnes.
The increased supply could also be balanced by falling outright prices that have plummeted by more than $30 a tonne since Aug. 3, with the benchmark 180-cst grade closing at a month-low of $373.20.
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