Pakistan State Oil is set to buy 1.17 million tonnes of oil products for delivery over May to July, its largest purchase of fuel in the spot market for this year, industry sources said on Monday.
The majority of the potential purchase, 910,000 tonnes, is for fuel oil which is used for power generation during the summer.
PSO is also set to buy 210,000 tonnes of gasoline and 50,000 tonnes of jet fuel at firmer premiums than its previous purchase. The gasoline volumes for the current tender are about 50 per cent higher than its April-May requirements due to increased demand from vehicle owners, the sources said.
The tender closed on April 27 and is valid until May 5.
Of the high sulphur fuel oil cargoes, Middle East trader Bakri is set to supply seven cargoes, while Swiss-based traders Vitol SA and Trafigura AG had the lowest offers for the remaining three cargoes.
The premiums range between $35.84 and $41.84 per tonne over Middle East quotes on a cost-and-freight (CFR) basis.
For low sulphur fuel oil, Swiss-based trader Gunvor had the lowest offers for all four cargoes at $108.87 per tonne over Middle East quotes.
For gasoline, Trafigura and Vitol are set to be awarded two cargoes each, while French major
Total SA and PetroChina Co Ltd are due to be awarded a cargo each. The premiums range from $87.94 to $126.00 per tonne above Middle East naphtha quotes.
The jet fuel cargoes are set to be awarded to Vitol and Total for delivery in May and June at premiums of $4.69 per barrel ($37.52 per tonne) and $4.32 per barrel ($34.56 per tonne) over Middle East quotes, respectively.
