Saudi Aramco, a major fuel oil exporter to East Asia, has imported its first-ever cargoes of the residual fuel, taking a total of around 160,000 tonnes for August and September deliveries, to meet peak summer utility demand amid a depressed global market, traders said yesterday."This is the first time ever that Aramco has actually bought fuel oil. It's a case of optimisation - the market has been poor and they have cut back on their own production due to depressed prices in the face of peak summer demand," a Singapore-based Middle East trader said.
"It's cheap to buy but bad to sell. They are still producing fuel oil but the volumes are not enough for domestic consumption so it makes sense, at this time, for them go out to the market and buy."
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Saudi Aramco, a major fuel oil exporter to East Asia, has imported its first-ever cargoes of the residual fuel, taking a total of around 160,000 tonnes for August and September deliveries, to meet peak summer utility demand amid a depressed global market, traders said yesterday.