Hyundai Oilbank signs 2014 bunker fuel contract with Mitsubishi -traders
SINGAPORE Dec 18 (Reuters) - South Korean refiner Hyundai Oilbank has signed a term contract to buy 380-cst bunker grade fuel oil from Japan's Mitsubishi Corp, trade sources said on Wednesday.
The Japanese trading house will supply an average of 60,000 tonnes of fuel oil to Hyundai Oilbank from January to December 2014 at a premium of about $15 a tonne to Singapore spot 380-cst fuel oil quotes, cost-and-freight (CFR) Korea.
Hyundai Oilbank will receive 60,000 tonnes every two months at a southern port and 30,000 tonnes per month at a western port, but exact port details were not available.
The 2014 term premium is 36 percent higher than the price agreed for Jan-Dec 2013 of $11 to Singapore spot quotes, CFR Korea.
Hyundai Oilbank will use part of the contracted volume to supply Korea Gas Corp, or Kogas, trade sources said.
The South Korean refiner inked a three-year term contract to supply Kogas with 20,000 tonnes a month of bunker fuel from West Korea.
The deal was concluded at a discount of about $10 to assessed prices for South Korea bunker fuel, trade sources said.
Hyundai Oilbank declined to confirm the contract details. Mitsubishi could not be reached for comment.
South Korea imports about 500,000 tonnes of fuel oil a month. (Reporting By Jane Xie; Editing by Muralikumar Anantharaman)