Price of Minas crude down on high RI export allocations<\/p>\n
SINGAPORE (Reuters): The price of Asia's heavy sweet Minas
\ncrude weakened yesterday, on slightly larger than expected August
\nexport allocations from Indonesia, traders said.<\/p>\n
\"The market was not expecting Minas to be so much, it's going
\nto pull prices down,\" said one trader.<\/p>\n
Traders said that offers for August Minas were currently
\naround 45 to 50 cents per barrel over the ICP, compared to the
\nlast August trades done at ICP +60 cents.<\/p>\n
Traders said that Minas allocations from the Indonesian state
\noil company Pertamina to its affiliates and term buyers totaled
\n31,900 barrels-per-day (bpd) for August, higher than the 28,300
\nbpd allocated for July.<\/p>\n
They also said that 21,000 bpd of Duri were allocated for
\nAugust.<\/p>\n
This compares to the 51,000 bpd allocated for July, as
\nexpectations of a full startup of the 125,000 bpd Balongan
\nrefinery increased domestic demand.<\/p>\n
Technical problems had led to a shut down of the refinery's
\nresidue catalytic cracker (RCC) in May, while the crude
\ndistillation unit was operating at 60 percent.<\/p>\n
Pertamina also allocated 4,600 bpd of Widuri, 4,000 bpd of
\nCinta and 9,700 of Bontang Condensate.<\/p>\n
For July, the state oil company allocated 7,000 bpd of Widuri,
\n9,000 bpd of Cinta and 8,100 bpd of Bontang.<\/p>\n
Traders said that although the August allocations of Duri,
\nWiduri and Cinta were lower month on month, the volumes were
\nwithin market expectations, limiting the effects on current spot
\nprices.<\/p>\n
August Widuri has been trading at strong premiums of around 60
\ncents to the ICP, while Duri was around 45 cents over ICP.<\/p>\n
Traders said that Pertamina failed to allocate any barrels to
\nits affiliates Perta and Indoil, for the second month in a row.<\/p>\n
Last month, Pertamina has said it would sever its contracts
\nwith the two affiliates, who are majority owned by friends and
\nfamily members of former President Soeharto.<\/p>\n
On light crudes, traders said August Tapis was sold at a small
\npremium to Tapis APPI quotes, but that could not be confirmed.
\nThe Middle East crudes were quiet apart from earlier reported
\ntrades of September Murban.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/price-of-minas-crude-down-on-high-ri-export-allocations-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}