Iran's October fuel oil exports are expected to return to normal levels, with at least five low-density cargoes, totalling about 400,000 tonnes, scheduled for delivery into East Asia, traders said on Tuesday.

The National Iranian Oil Co (NIOC) has returned to full allocations of its straight-run 280-centistoke (cst) cargoes, for October-loading from Bandar Mahshahr to all its term buyers in both East Asia and the Middle East.

The restoration of the Iranian exports, totalling 6-7 parcels of 80,000 tonnes each and up from 2-3 lots for each of the past two months, will come as a relief to the fuel oil market, which has struggled with tight supplies through August and September, the traders said.

Oil major Shell and Singapore trader Kuo Oil have secured two lots each of the cargoes that are headed for East Asia, while PetroChina has the other parcel.

European trader Vitol and Bakri have also one parcel each, both for their operations in the Middle East, which have also suffered from supply tightness these two months.

"It's particularly timely that the Iranian flows return to normal levels for October, because of the heavy volumes of high-density, high-viscosity Western arbitrage arrivals that will need to be blended to specification," a Singapore-based trader said on the sidelines of the industry's APPEC conference.

The lack of Iranian volumes, particularly for September where total Mideastern flows into East Asia plunged to 21-month lows, has drawn heavy Western arrivals for October.-Reuters