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.