IOC offers 30,000 tonnes fuel oil for end-Jan

Singapore, Jan 3: Indian Oil Corp. (IOC) issued a tender offering 30,000 tonnes of late-January high-sulphur, high-density fuel oil after selling its previous cargo at a higher price, traders said on Wednesday.

The 380-centistoke (cst) cargo, of 4.5 percent sulphur content and 0.995 density, is for Jan. 27-31 loading from its Chennai terminal on a free-on-board (FOB) basis.

The refiner's previous parcel, of similar specifications, was sold to Japan's Marubeni International Corp. at a discount of about a tonne to Singapore spot quotes, FOB, up from a - discount previously.

''They are probably encouraged by the previous deal and the fact that the market is improving due to tightening supplies. I wouldn't be too surprised if this parcel gets done at slightly higher levels,'' a Mumbai-based trader said.

The cargo, as with most high-viscosity, high-density Indian offerings, are expected to be sold into the Singapore marine fuels market.

This is the year's first parcel from Indian refiners, who are expected to sell similar increased volumes this year into East Asia, compared to 2006.

Last year, India exported a total of 3.19 million tonnes of fuel oil, well above 1.83 million tonnes in 2005.

REUTERS