Vitol, Glencore win Libyan oil products tender

Trading giants Vitol and Glencore have won tenders to supply oil products to Libya’s government until the end of the year in a move that rivals said was increasing their chances to snap lucrative deals to export Libyan oil next year.

Libya’s National Oil Corporation was seeking to buy up to 450,000 tonnes of gasoline, 360,000 tonnes of gasoil and 180,000 tonnes of fuel oil in November-December and five trading sources told Reuters on Thursday Glencore and Vitol have won the tenders.

The exact breakdown was not immediately clear. Glencore and Vitol declined to comment.

Traders with rival firms said Vitol and Glencore might have been prepared to accept low returns on the products deal in order to win lucrative contracts to export Libyan oil in 2012, which are due to be awarded within weeks.

“The greater the credit terms offered on products, the greated the right to advantages on quantities of crude,” said a trader with a rival company.

A source close to Glencore confirmed the company has won some Libyan tenders.

“We are pleased to continue to further our relations with the Libyan government as well as helping to support energy needs following the recent turmoil,” a source close to Glencore said.

(Source: Reuters)

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