Kuwait’s Al Zour refinery has awarded its spot tender for 0.5% very low sulphur fuel oil (VLSFO) loading later in July, market sources said on Wednesday.

The cargo was sold to a trading house at a discount of $8-$9 per metric ton to VLSFO cargo quotes on a free-on-board (FOB) Kuwait basis, little changed from its previous spot tender, sources said.

The refiner had offered 130,000 tons of the product for loading July 21 and 22 via a tender that closed on July 9.

Market sources said the cargo was likely to land in the Middle East instead of Asia, taking into consideration the price and current freight rates.

Kuwait’s VLSFO exports have trended lower since May, as more of the fuel is diverted towards power generation during its summer months.
Source: Reuters (Reporting by Jeslyn Lerh; editing by Jason Neely)