Asia crude mart likely weaker

Asia crude mart likely weaker

SINGAPORE (Reuters): The Asian crude market is expected to be
under pressure on ample supplies this week, as refinery shutdowns
for maintenance cut demand even as Indonesia and China reduce oil
production, traders said yesterday.

"The output cutbacks may in the mid to longer term help
stabilize heavy regional crude prices, but there is still a fair
bit of supply around right now," said a trader with a major oil
company.

China and Indonesia separately announced earlier this month
they would cut crude output by a combined 220,000 barrels-per-day
(bpd) starting April. But this has not put a dent on the
oversupplied crude market in Asia.

With Asian refiners going to deeper maintenance shutdowns in
May, the fall in demand is likely to more than offset the
reduction in crude oil supplies, traders said.

Some North Asian refiners, especially Japan, start their
yearly maintenance turnarounds in April, but the bulk of the
shutdowns will be carried out in May and June, traders said.