Pakistan State Oil has bought year-high fuel oil volumes for a second consecutive time, of up to 1.01 million tonnes, for May-July delivery via tender at steady price levels, a company official said on Monday.
The state oil firm bought up to 14 parcels of 65,000-tonne high sulphur fuel oil (HSFO), and two 50,000-tonne low-sulphur cargoes (LSFO), from Middle East traders Bakri and FAL Oil on cost-and-freight basis at FOTCO (Port Qasim) and Keamari, Karachi.
PSO bought eight firm 180-centistoke (cst) cargoes, four each from the two suppliers, at premiums of $13.69-$16.73 a tonne to Middle East spot quotes, C&F, and another six optional cargoes from FAL at premiums of $16.29-$19.23. It also bought one firm 50,000-tonne LSFO parcel of 170-cst, of up 0.99 per cent sulphur content, at a premium of $56.96 a tonne, and another optional lot at a premium of $63.49, both from FAL. PSO has bought year-high volumes for a second consecutive three-month cycle due to spiralling demand for electricity amid new oil-fired plants coming into operation and shortages from other power-generating sources such as natural gas and hydropower, the official said.
It last bought the same volume, for April-June delivery cargoes, including eight firm parcels at premiums of $13.27-$16.89 a tonne, C&F. Previously, PSO’s volume averaged about 450,000-650,000 tonnes for each three-month cycle. “It is now the peak summer demand months, so naturally demand from the utilities are high and there is also a lack of hydropower. Before that, we had some problems with natural gas supplies during the winter as well,” the official said.
The state oil firm bought up to 14 parcels of 65,000-tonne high sulphur fuel oil (HSFO), and two 50,000-tonne low-sulphur cargoes (LSFO), from Middle East traders Bakri and FAL Oil on cost-and-freight basis at FOTCO (Port Qasim) and Keamari, Karachi.
PSO bought eight firm 180-centistoke (cst) cargoes, four each from the two suppliers, at premiums of $13.69-$16.73 a tonne to Middle East spot quotes, C&F, and another six optional cargoes from FAL at premiums of $16.29-$19.23. It also bought one firm 50,000-tonne LSFO parcel of 170-cst, of up 0.99 per cent sulphur content, at a premium of $56.96 a tonne, and another optional lot at a premium of $63.49, both from FAL. PSO has bought year-high volumes for a second consecutive three-month cycle due to spiralling demand for electricity amid new oil-fired plants coming into operation and shortages from other power-generating sources such as natural gas and hydropower, the official said.
It last bought the same volume, for April-June delivery cargoes, including eight firm parcels at premiums of $13.27-$16.89 a tonne, C&F. Previously, PSO’s volume averaged about 450,000-650,000 tonnes for each three-month cycle. “It is now the peak summer demand months, so naturally demand from the utilities are high and there is also a lack of hydropower. Before that, we had some problems with natural gas supplies during the winter as well,” the official said.