SINGAPORE: Saudi Aramco has sold 90,000 tonnes of September-loading fuel oil yesterday at what traders said was the highest differential on record amid stirring import demand from China in the face of falling out. The 180-centistoke (cst) A961 cargo, for September 3 to 5 lifting from its Ras Tanura refinery, was sold to US-based Koch Refining at a premium of around 50 cents a tonne to Singapore spot quotes on a free-on-board (FOB) basis, they said.
"The strike price was quite shocking, to say the least. I don't think we have ever quite seen A961 done at premium levels before. It was quite keenly contested this time and Koch managed to pip everyone because I think they have some freight advantage," a Singapore-based Asian trader said.
This was the first time Aramco had sold A961 fuel oil, since concluding an end-March parcel at a discount of $1.00 a tonne to parity, as the Middle East emerges from its peak summer demand period.
Traders said even the March cargo was done at high price levels as A961 parcels are typically done at discounts of around $6-$8 a tonne to spot quotes. Traders said the low-density A961 parcel is typically sold into China, Asia's largest buyer, either as utility-grade fuel oil or as blendstock.
EDIT
http://www.gulf-daily-news.com/Story.asp?Article=191494&Sn=BUSI&IssueID=30157