Asian crude firm on improved mart demand<\/p>\n
SINGAPORE (Reuter): The Asian crude market is expected to see
\nsome support this week on improved demand as refiners return from
\nturnarounds while Iraqi crude stays away from Japan, traders said
\nyesterday.<\/p>\n
They said news that Japan may not be given Iraqi crude should
\nkeep the Asian crude market from being flooded.<\/p>\n
Japanese companies were informed by Baghdad last week that
\nthey were unlikely to be allowed to take Iraqi crude in August.<\/p>\n
The Japanese companies said that this was probably because of
\nJapan's political alignment with the United States and its role
\nas both a non-permanent member of the U.N. Security Council and a
\nmember of the U.N. Sanctions Committee.<\/p>\n
The Japanese companies were however confident that they would
\nhave access to Iraqi oil in September, but this would arrive in
\nAsia only in October.<\/p>\n
"The Asian market is balanced without Iraqi oil" said a
\nwestern trader.<\/p>\n
"Most of the Asian refineries would have also come out of
\nmaintenance shutdowns by September, which should boost demand"
\nadded a trader with a major oil company.<\/p>\n
The oversupply seen in the Asian crude market in August had
\nsubsided last week as trading moved to September.<\/p>\n
"A large volume of light crudes have moved out of the region,
\nwhich has tightened the market a little" said an Australian
\nproducer.<\/p>\n
A western trader had taken light sweet Tapis to the U.S. Gulf,
\nwhile some Australian crudes had moved to Hawaii.<\/p>\n
Light Asian crudes such as Malaysian Tapis and Australian
\nCossack and Griffin were trading at stronger levels for
\nSeptember.<\/p>\n
The heavier Indonesian crudes, which had fallen sharply in
\nlate August trading, are also expected to see increased demand,
\nas the limited supplies of light crudes force buyers to turn to
\nthe heavier grades, traders said.<\/p>\n
Heavy sweet Minas traded at a premium of 15 cents per barrel
\nto the ICP for late August deals, down from the high premiums of
\n75 cents seen in late July and early August.<\/p>\n
But sellers of September Minas were holding out for premiums
\nof 60 cents per barrel, confident of stronger demand.<\/p>\n
Trading on the Middle East crudes in Asia is expected to be
\nvery quiet this week, since September requirements were mostly
\ncovered.<\/p>\n
The spot price for the OPEC basket of seven crudes averaged
\n17.86 dollars per barrel in July, a 49 cent increase over the
\nrevised June average of 17.37, the MEES reported Monday.<\/p>\n
The price is still down from the 18.76 dollars per barrel
\nreached in May after a continual fall since the beginning of the
\nyear, the economic journal added.<\/p>\n
Despite the prospect this week of the resumption of Iraqi
\ncrude exports, suspended for two months, Saudi oil giant Aramco
\ndecided to raise its prices for September deliveries from 15 to
\n25 cents per barrel, MEES said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-crude-firm-on-improved-mart-demand-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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