New Delhi, May 11: Oil firms have resumed the export of fuel oil on the back of rising global crude prices and early signs of global recovery. Fuel oil is used to run furnace, boilers and engines.

Indian Oil Corporation Ltd has put out a tender offering 30,000 tonnes for delivery early June. It has already sold a similar quantity that will be shipped next week.

Besides, sources said, Essar Oil has sold 60,000 tonnes for delivery in May and June.

Indian firms had stopped exports since late March and switched to the production of bitumen, in heavy demand, domestically, for infrastructure projects.

Notwithstanding the March hiccup, exports in the last fiscal rose by $945 million to $1.6 billion.

In terms of volumes, they rose to 5,931 tonnes from 4,719 tonnes.

Oil exports, overall, in the last fiscal fell 10.7 per cent to 36.41 million tonnes from 40.77 million tonnes. In terms of value, they fell to $26.01 billion from $27.55 billion.

IOC Iran move

IOC Ltd may cut its stake in the massive Farsi gas and oilfield in Iran as it faces financing pressure because of continuing losses on fuel sales.

IOC Ltd holds a 40 per cent interest in Farsi, where ONGC Videsh — overseas arm of Oil and Natural Gas Corporation Ltd — is the operator with an equivalent shareholding. Oil India Ltd holds the remaining 20 per cent.

“Developing the gasfield alone would cost $4 billion and accordingly our investment would be $1.6 billion (Rs 8,000 crore). Whether we will have that kind of money to spare during 2010-2014 is to be seen,” an Indian Oil official said.

During this period, Indian Oil has to build the Paradip refinery in Orissa at a cost of Rs 29,777 crore.

Crude price dips

Crude oil retreated on Monday to $58 a barrel, pressured partly by weaker equity markets and a firmer dollar.

Profit-taking had also helped drive the market back from six-month highs reached on Friday.

US crude was down 47 cents at $58.16 a barrel by 1515 GMT (8.45pm), off a session low of $56.78. London Brent crude was down 92 cents at $57.22.