SINGAPORE: Kuwait’s recently opened Al Zour refinery has stopped offering very low-sulphur fuel oil (VLSFO) tenders amid a partial shutdown at the complex, trade sources said.
Al Zour’s exports are closely watched by traders as it is poised to be a major exporter of VLSFO once it ramps up fully, with most of its product expected to land in key ship refuelling hubs including Singapore and Fujairah in the United Arab Emirates.
The refinery last closed a VLSFO tender on March 21, when it offered about 120,000 tonnes for loading between April 7 and 8.
The company has typically issued such tenders every one to two weeks since it started ramping up exports earlier this year.
The refinery, which began exports in November, has been partially shut down due to technical issues, a spokesperson for Kuwait Integrated Petroleum Industries Company said on Wednesday.
Kuwait Petroleum Corp, which owns the refinery operator, did not respond to requests for further comment.
The company had added in a tweet that efforts were under way to gradually restore operations there within two weeks.
Speculation about the refinery’s production issues had spurred a short-lived recovery in Asia’s VLSFO market causing spot differentials and prompt intermonth spreads to rise for three trading sessions.
However, the price gains fizzled out over this week as broader supplies remain ample in Asia.
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