Pakistan: PARCO issues fuel oil sales tender

Pakistan’s Pak-Arab Refinery (PARCO) has offered fuel oil for July loading in its latest tender, underlining an ongoing shift in market dynamics as the South Asian country turned to exporting instead of importing fuel oil this summer.

The refinery has offered 50,000 tons of high-sulphur fuel oil (HSFO) with maximum 3.5% sulphur content, for loading at Karachi port between July 15 and 17.

The tender closed on July 05, Parco had previously closed an HSFO sales tender in May this year.

Imports of fuel oil into Pakistan slumped in the second quarter this year as companies resorted to burning more coal for power generation due to its cheaper cost and easy availability.

Monthly imports had hit a four-year high in the second quarter last year.

The country’s fuel oil exports have trended higher in 2023 so far compared to 2022, a total of 340,000 tons in Q2CY2023. It did not export any fuel in the same quarter last year, data from shipping analytics firm Kpler showed.

The country typically imports fuel oil from the Middle East.

Exports have so far gone to Singapore and the United Arab Emirates this year.

The export trend could continue in the coming months as the peak summer demand season is already retreating, with refineries seeking to clear inventories, trade sources said.

 

Singapore bunker sales rebound in March

Sales of marine fuel, also known as bunker fuel, recovered at top refuelling hub Singapore in March as vessel calls for bunkering reached more than two-year highs, official data showed Friday.

Bunker sales are an indicator of sentiment at one of the world's most major ports and demand also affects fuel oil refining margins in Asia.

Singapore's bunker sales in March rose to 4.18 million tons, up 10%MoM and 11%YoY, Maritime and Port Authority data showed.

The rise reflected increasing vessel calls for bunkering, which hit more than two-year highs at 3,476 calls in March.

Demand improved after a lackluster February, when sales hit eight-month lows.

Lower upstream crude oil prices in March, which led to lower outright prices for bunkers, encouraged slightly more buying inquiries, trade sources said.

Volumes rose in March for all key bunker grades, including low-sulphur fuel oil, high-sulphur fuel oil and marine gasoil.

Bunker sales of LSFO grades totaled 2.58 million tons, up 10%MoM, the data showed.

Sales of HSFO grades totaled 1.24 million tons, up 11% from February while marine gasoil sales rose 9% to 330,200 tons.