Iran seals 09' term fuel oil export
Tehran, March 4, 2009
Traders said that the cargo would probably land in Singapore at a premium of about $9 a tonne to Singapore spot 180-centistoke (cst) quotes.
"This seems decent enough for the current market, a little steep for some but if you're a refiner then you can optimize value on the barrels," a Singapore-based trader said.
The Iranian straight-run grade, 280 cst is typically sought after for its low-density and high gasoline and diesel yield.
"It's a good density cutter, and in Singapore with all the Venezuelan material coming there is some demand," a fuel oil trader said.
But since the fourth quarter of 2008, traders have been forced to source alternative blending materials due to the erratic supply flows from Iran.
"Now there is much more Russian straight-run (fuel oil) from the Far East coming into the market, and the price is equally competitive," traders said.-Reuters