May 23, 2012:

Indian refiner Mangalore Refinery and Petrochemicals Ltd sold a June loading fuel oil cargo at a lower price level, amid an amply-supplied market, traders said on Wednesday. MRPL sold 80,000 tonnes of 380-centistoke (cst), for June 9-11 loading from New Mangalore, to Japanese trader Mitsui, at a discount of $1.00 to flat a tonne to Singapore spot quotes, on a free-on-board (FOB) basis.

The refiner sold a similar cargo last month at a premium of $2.50 a tonne to Singapore spot quotes, FOB, to oil major BP for lifting in end-May. Traders said that the lower price was due to the market being well-supplied at the moment as demand, especially from China, has been slow. "The market is not short of lighter-density grades right now," a trader said. MRPL last sold a cargo at a discount in August last year, with Unipec purchasing 80,000 tonnes at a discount of 50 cents to $1.00 a tonne.

By Reuters