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Apr 28, 2023

Kuwait’s Al Zour offers more fuel oil in second tender in a week

in Freight News19/05/2023 Kuwait’s Al Zour refinery has issued a second tender

in Freight News19/05/2023

Kuwait's Al Zour refinery has issued a second tender offering fuel oil in the same week, trade sources said on Friday, after it recently resumed spot sales following a gap of nearly eight weeks.

The refinery has offered 120,000 to 150,000 tonnes of LSFO -with maximum sulphur content of 0.5% – for loading between June 3 and June 4, in a tender that closes on May 19, sources said.

It last closed a LSFO tender on May 15, when it offered a cargo of the same volume for loading between May 27 and 28, the first in more than eight weeks as its crude distillation units ramp up after a partial shutdown.

The tender for late-May was awarded to Japanese trading house Marubeni at discounts of $13 to $15 a tonne versus Singapore 0.5% LSFO cargo quotes, on a free-on-board basis, sources said.

Al Zour's low-sulphur fuel oil (LSFO) tenders are closely watched by market participants as the refinery is poised to be a major LSFO exporter when it ramps up fully. Its third crude distillation unit is expected to ramp up in the third quarter.Source: Reuters (Reporting by Jeslyn Lerh; Editing by Sherry Jacob-Phillips)