Slow demand hits Gulf long-term deals

Gulf refiners are striking deals or have started negotiations on long term supply for 2010 with premiums so far at lower levels than for 2009 due to thin demand.

On the spot market, fuel oil prices fell amid plentiful supply from Saudi Arabia.

Aramco and Exxon Mobil sold a cargo each of high viscosity fuel oil from their joint Samref refinery in Yanbu, pushing down prices.

Aramco sold Cargill its cargo of 85,000 tonnes of 650-centistoke fuel oil for December 3-5 loading at $23-$24 below benchmark prices.

Trade Arabia