Asian crude prices steady, Minas weakens<\/p>\n
SINGAPORE (Reuter): Crude oil prices in Asia were mostly
\nstable yesterday with the regional focus honed on the Minas
\nIndonesia grade, which is being pressured lower.<\/p>\n
Slack demand has driven the differential to a talked discount
\nyesterday of 30 U.S. cents per barrel below the contract price.
\nAn absence of buying from China and moderate demand from Japanese
\nutilities has allowed major buyers to wait in the wings of the
\nmarket for lower prices, traders said.<\/p>\n
A Japanese refiner was said to have bought two lots of 100,000
\nbarrels of Minas on Friday from producers at a 23-cent discount.
\nSome sources said the price was nearer minus 30.<\/p>\n
A million Minas barrels remain on the shelf for August,
\ntraders said.<\/p>\n
China, traditionally a Minas buyers, has been absent from the
\nAugust market and instead is trading out of Oman and into Masila,
\nsources said.<\/p>\n
Traders said China late last week may have bought up to 1.5
\nmillion barrels of September Masila between OSP minus 5 cents and
\nOSP minus 15 cents.<\/p>\n
At the same time, China sold three cargoes of September Oman
\nat premiums of plus 2 cents and plus 3 cents, traders said.<\/p>\n
Brent\/Dubai paper was steady versus London's Friday levels.<\/p>\n
Brent\/Dubai for October was talked at US$1.35\/$1.42 per
\nbarrel, versus $1.35\/$1.40 late on Friday. Other months were not
\ndiscussed. Dubai for Sept\/Oct was offered at 37 cents and Oct\/Nov
\nwas quoted at 30\/36 cents. Brent spreads were quiet.<\/p>\n
Brokers said overall direction would depend on whether Brent
\nmanages to make a sustained break above $20.00 per barrel, or
\nwhether the price retreats.<\/p>\n
They said the market appeared to be consolidating for the time
\nbeing. September Brent was last traded in London at $20.00.<\/p>\n
production<\/p>\n
Meanwhile, the Middle East Economic Survey (MEES) reported
\nyesterday that production of crude oil by Organization of
\nPetroleum Exporting Countries (OPEC) remained stable in July at
\nmore than 25 million barrels per day (bpd).<\/p>\n
July's production of 25.59 bpd was only slightly more than
\nJune's 25.563 bpd, the newsletter said.<\/p>\n
The 11 members' production exceeded by 557,000 bpd the ceiling
\nimposed by the cartel in June, despite Gabon's exit from OPEC
\nwith its quota of 287,000 bpd and Iraq's authorization to produce
\n800,000 additional bpd.<\/p>\n
Iraq still has not benefited from the partial lifting of the
\nembargo imposed on it by the United Nations six years ago.<\/p>\n
Venezuela remains at the head of those members who have
\nsurpassed their OPEC-authorized level of production, with 711,000
\nbpd beyond its quota, followed by Nigeria, which has overproduced
\nby 115,000 bpd, Qatar by 92,000 bpd, Algeria by 80,000 and
\nIndonesia by 70,000 bpd.<\/p>\n
Only Saudi Arabia, the world's largest oil producer has stuck
\nto its quota of eight million bpd, in force since the 1990 Iraqi
\ninvasion of Kuwait. Previously its quota was 5.3 million bpd.<\/p>\n
The average OPEC basket price was fixed at $19.29 a barrel,
\nagainst $18.36 a barrel in June. The price is still below OPEC's
\ngoal of $21 per barrel, which it has been aiming at for nearly
\nthree years.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-crude-prices-steady-minas-weakens-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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