SINGAPORE: Pakistan State Oil is set to buy 320,000 tonnes of gasoil and gasoline for delivery over June to August, after already purchasing nearly 1 million tonnes of oil products earlier this year, industry sources said on Wednesday.
The company is purchasing gasoil for the first time in more than a year as demand picks up during the summer period for agricultural activities and its term supplier, Kuwait Petroleum Corp (KPC), is unable to supply additional volumes due to power generation demand in the Middle East.
PSO is set to buy six 35,000-tonne cargoes of 87-octane gasoline at firmer premiums than the May-July loading spot cargoes it bought in early May.
Total, Swiss Singapore and Gunvor are set to supply two cargoes each at premiums ranging from $111.80 to $135.00 a tonne over Middle East naphtha quotes on a cost-and-freight basis.
It is also set to buy two 0.5 percent sulphur gasoil cargoes of 55,000 tonnes each from Vitol and Glencore at premiums of $5.69 and $4.88 a barrel over Middle East quotes respectively.
The tender closed on May 29 and is valid until June 2.
PSO last bought over 700,000 tonnes of fuel oil, 210,000 tonnes of gasoline and 25,000 tonnes of jet fuel for delivery over May to July.
For gasoline, it paid premiums ranging from $87.94 a tonne to $126.00 a tonne over Middle East naphtha quotes.
PRODUCT DELIVERY PERIOD SELLERS PRICE*
Gasoline 87OCTANE July Total $119.28/tonne
(35KT each) July Swiss Singapore $117.84/tonne
August Gunvor $118.87/tonne
August Gunvor $117.45/tonne
August Swiss Singapore $111.80/tonne
July-August Total $135.00/tonne
Gasoil 0.5% sulphur June 14-16 Vitol $5.69/barrel
(55KT each) June-July Glencore $4.88/barrel
*prices are premiums to Middle East benchmark quotes. AGENCIES