Singapore, Sept 28: Hindustan Petroleum Corp Ltd (HPCL) has issued a tender offering 25,000-30,000 t

Singapore, Sept 28: Hindustan Petroleum Corp Ltd (HPCL) has issued a tender offering 25,000-30,000 tonnes of October-loading fuel oil amid a balanced market, traders said on Friday.

The 380-centistoke (cst) fuel oil, of 4.0 percent sulphur and 0.998 density, is for loading on Oct. 11-13 from its Vizag terminal, on a free-on-board (FOB) basis.

The tender closes on Sept. 30 and is valid until a day later.

''The market is still a little short in East Asia and I think the cargo will go at pretty decent levels, similar to the last couple of deals,'' a Singapore-based Asian trader said.

HPCL last sold three similar cargoes, for October-December loading, at discounts of $14-$15 a tonne to Singapore spot quotes, steady to price levels done for such parcels in the past month.

The fuel oil market is supported by supply tightness in the Middle East that has seen major supplier Iran slashing its supplies by up to 50 percent for September and October.

The shortfall was balanced by heavy Western inflows for October at 2.5-2.6 million tonnes, the highest volume in five months, and tepid buying sentiment from China, Asia's largest buyer, that has seen below average import volumes of 1.6-1.7 million tonnes for two consecutive months in August and September.

Reuters>