Vietnam Petrolimex buys 35,000 tonnes of fuel oil

Vietnam’s Petrolimex bought up to 35,000 tonnes of March-loading fuel oil, their first purchases from the spot market in about three months, amid strong price-levels for a second consecutive month, traders said on Friday.

The national import-export firm bought via tender 10,000 tonnes of low 0.97 density and 25,000 tonnes of high 0.99 density 180-centistoke fuel oil, for March 15-22 loading from Singapore from BP. Respective premiums were US$25 a tonne and $9 to $10 to Singapore spot quotes on a free-on-board (FOB) basis.

It also cancelled its requirements for another two cargoes, 10,000 tonnes of low-density fuel oil and 25,000 tonnes of 380-cst both for March 1-5 lifting, via the same tender.

“Petrolimex hasn’t been very active since the fourth quarter, as they have switched some of their power-generation requirements to coal, which is cheaper,” a Singapore-based Western trader said.

“They have also renewed their term deal with LUKOIL for another year and they have some supplies from Dung Quat, so their requirements for this year would not be very much.”

Traders said Russian major LUKOIL has sold 2 to 3 cargoes of 30,000 tonnes each for January-loading onwards.

The firm last issued a tender for about 70,000 tonnes of November-December loaders, which was transacted at undisclosed price levels.

Tags: Petrolimex