ExxonMobil Offers End-October 2009 Yanbu Fuel Oil

ExxonMobil is offering 80,000 tons of highـviscosity fuel oil for endـOctober lifting via tender from the Red Sea port of Yanbu, its fourth cargo this month, traders said. Apart from Exxon, increased spot exports from Saudi Aramco and Kuwait Petroleum Corp has dampened sentiment in the Asian fuel oil market this week, triggering a sellـoff in cracks and time spreads. The tender for the 650ـcentistoke cargo, which loads on 29ـ31 October 2009 from Exxon's joint venture Samref refinery with Saudi Aramco, closes on 14 October 2009. Aramco last sold a Yanbu parcel for Oct 24ـ26 lifting to Vitol at US$12-US$13 per ton below Singapore spot quotes, on a freeـonـboard (FOB) basis. This was lower than the discount of US$10-US$11 per ton to Singapore spot quotes, FOB, that Middle East trader FAL Oil paid for a similar cargo loading on Oct. 11ـ13. Exxon also offered a rare combination of 25,000 tons of 700ـcst fuel oil and blend stock light cycle oil (LCO) ـ it''s first ever ـ for Oct. 20ـ22 lifting from the Samref plant. It was not disclosed who bought the parcel, but the 700ـcst cargo was transacted at US$11-US$12 per ton below Singapore spot quotes, FOB, while the LCO cargo was done at a premium of US$40 per ton to Singapore spot quotes. Fuel oil's November/December time spread, which becomes prompt, was sold down to parity after the close of trade on 12 October 2009, weighed down by the heavierـthan expected Middle East supplies. Reflecting the weaker market, the prompt November 2009 crack closed wider than minus US$4 a barrel for the first time in three sessions, and was valued at a discount of US$4.13 a barrel to Dubai crude, down 41 cents. Aramco's increased sales were largely due to recent outages at its Ras Tanura and Rabigh refineries, while KPC's higher exports came after it partially shut down the crude unit at its Shuaiba refinery for an unscheduled maintenance earlier this month. - AlWatan, Reuters