Indonesia not to import fuel in March<\/p>\n
SINGAPORE (Reuters): Indonesia will not import any fuel oil
\nfor March arrival after failing to buy any cargoes for February,
\nindustry sources said on Thursday.<\/p>\n
"Indonesia is not buying any fuel oil March. In February it
\nwas also zero," one regular supplier to Indonesia said.<\/p>\n
Indonesia normally imports an average of about 200,000 tons,
\nor about 1.3 million barrels, of fuel oil a month but this was
\nhalved to 100,000 tons in January as the country grappled with
\nits worst economic crisis in decades.<\/p>\n
Traders had initially expected state-owned Pertamina to import
\naround 100,000 tons in February but this was canceled as the
\neconomic troubles worsened.<\/p>\n
Indonesia's 1997 fuel oil imports peaked in October and
\nNovember, when imports soared to 400,000 tonnes, they said.<\/p>\n
Pertamina had said on Tuesday that the size of imports of fuel
\nproducts would depend on domestic demand and output from local
\nrefineries.<\/p>\n
Indonesia had raised its refining capacity by about 100,000
\nbarrel per day (bpd) last year to 1.05 million bpd and this,
\ntraders said, has allowed the country to cutback its imports.<\/p>\n
"At the moment we are reducing imports of fuel products
\nbecause domestic demand is less," Pertamina general affairs
\ndirector Hadi Daryono said on Tuesday.<\/p>\n
Indonesia had also deferred its February diesel imports and is
\nnot expected to buy any diesel on a spot basis in March, traders
\nsaid.<\/p>\n
Meanwhile traders in London said Kuwait sold to European
\ncustomers some of the term contract middle distillates turned
\nback last week by Indonesia.<\/p>\n
They said Wednesday Kuwait Petroleum Corp (KPC) in February
\nhad exported some three cargoes of gas oil and two cargoes of jet
\nto European buyers, higher than its usual exports.<\/p>\n
The extra volumes were those previously lined up for
\nIndonesia, they said.<\/p>\n
The cargoes were sold on a free-on-board Kuwait basis. KPC in
\nEurope had no immediate comment.<\/p>\n
Traders said a further Kuwait gas oil cargo earmarked for
\nIndonesia had been diverted to Nepal.<\/p>",
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