Asian crude prices lower on weak demand

Asian crude prices lower on weak demand

SINGAPORE (Bloomberg) Asian crude prices were lower on Friday because of weak demand for remaining May-loading Minas cargoes, traders said.

In the spot market, Indonesian Minas crude was 40 cents lower at $23.95 a barrel, or 85 cents a barrel more than its Indonesian Crude Price.

June Brent crude oil futures on the Singapore International Monetary Exchange settled 17 cents lower at $22.95 a barrel. The parallel contract on London's International Petroleum Exchange yesterday closed 33 cents lower at $22.79 a barrel.

Demand for Minas cargoes remained weak, though participants estimated only about 500,000 barrels of May-loading Minas was left unplaced on spot market, traders said.

The Asian Petroleum Price Index Tapis crude premium was steady at $1.20 a barrel. May swaps were assessed lower today at $23.60 a barrel in line with lower Brent futures, traders said.

The main equity-producer of Malaysia's light, sweet crude will likely offer one cargo each of Tapis and Labuan crude during May, a Malaysia-based trader said. Those cargoes will be placed through negotiation with spot buyers, not through a tender like the previous Labuan cargo.

Oman crude prices were assessed at 10-15 cents below its official selling price. There were still some May loading cargoes available on the spot market. Traders said Japanese buyers were unlikely to buy the remaining cargoes as their requirements for May had been filled.

Participants expected Japanese buyers to buy more June-loading Oman cargoes because some Japanese refiners will finish their spring maintenance in July.

Australian Cossack crude premium was steady at 70 cents over APPI Tapis. Traders reported no deals this week.

Australian Gippsland crude supply was disrupted from Tuesday because of production problems, traders said. Supply was reduced 50 percent during the past three days, although the problem was fixed today traders said.