BAKU, Azerbaijan, October 30. Discounts on export shipments of Kazakh fuel oil increased in October compared with September, according to international price reporting agency Argus.
The product is becoming cheaper amid higher transportation costs for buyers following the indexation of railway tariffs in Kazakhstan, according to traders.
Discounts on export shipments of fuel oil produced at the Shymkent Oil Refinery in October were assessed at $250-270 per tonne (FCA plant), excluding export duty, against quotations for fuel oil with a sulfur content of up to 3.5% in the Mediterranean and Northwestern Europe. In September, discounts stood at $248-270 per tonne, the agency reported.
"Supplies of fuel oil from the Shymkent Oil Refinery are currently limited, as the product is being actively shipped to social facilities," a market participant told Argus.
Discounts on fuel oil supplied from the Shymkent Oil Refinery against quotations for fuel oil with a sulfur content of up to 1% were assessed at $285-300 per tonne (FCA plant) in October, excluding the export duty of $30 per tonne, compared with $285-290 per tonne a month earlier.
In October, several suppliers of fuel oil from the Shymkent Oil Refinery plan to sell batches of the product on the domestic market.
