Fuel oil traders looking to work arbitrage shipments between Europe and Asia have this month been fixing Iranian VLCCs.

India-flagged medium range oil tanker MT Genessa, anchored around 14 nautical miles off the port of Kandla, Gujarat, caught fire Wednesday.

ICE March Brent 70 cents lower to $68.61/b, NYMEX February crude declined 58 cents to $63.37/b.

North America activity also seen strong in second year of recovery from downturn.

"Although SOMO cut their OSPs, Basrah Light is still under pressure as there are too many cargoes in the market for January -- it won't go into premium yet," a trader said.