The term contract covers about 75,000 tonnes of 3.0-per cent sulphur 280-centistoke (cst) fuel oil to be lifted from March to November, traders said.

"The discount is very steep compared with last year's level," a trader said, adding that the deeper discounts were reflective of current soft market fundamentals.

The price for the 1998 term contract was concluded at $2.00-$2.50 to the Gulf quotes, free-on-board (FoB).