Asian heavy crude prices steady

Asian heavy crude prices steady

SINGAPORE (Reuters): Asia's heavy crude prices were steady
yesterday as pending Indonesian export allocations for August
kept trading limited.

Traders said that heavy Indonesian crudes such as Minas and
Widuri were talked at firm premiums of 50/55 cents per barrel to
ICP, in line with the last cargoes traded, but no new deals were
reported done.

Indonesian state oil company Pertamina is due to announce its
August export allocations later this week.

Traders said that light sweet Malaysian Tapis crude was
offered at a premium of 20 cents to APPI quotes, stable from
July.

They said an August Bach Ho was also heard to have been done
between two Japanese traders, but this could be and old trade,
prior to a partial cargo purchase that a U.S. major made late
last week.

Heavier regional crudes were befitting from hot weather and
expectations of a boost in utilities' demand for direct burning
crude to produce power.

But middle distillate-rich crudes such as Tapis were under
some pressure, as Asian demand for gas oil faltered, and kerosene
buying goes into a seasonal lull, traders said.

In the Middle East crude market, August Oman was assessed at
MPM -2 cents per barrel, unchanged from previous trades done.

Saudi Arabia has told its Japanese and South Korean buyers
that August term liftings would be cut by 8 to 9 percent on
average.

This was a larger cut than was implemented in July.
In July, cuts in term sales to Japan averaged 6-7 percent, while
reductions in South Korean sales were around 4.5 percent,
although actual cuts to each buyer differed depending on the term
volumes and types of grade lifted.

European buyers have also been told by Saudi Arabia of an 8 to
9 percent cut in August crude liftings.

Traders said Abu Dhabi had told customers of August term
reductions.

Qatar had earlier told customers that term lifting cuts
effective in July, would last until the end of the year.
Oman had informed buyers that its July reductions would continue
until further notice.

They said that Iran had also told buyers of a 10 percent cut
in its export volumes, but again lifters were unclear how much of
their actual term liftings would be affected.

For July, traders said that Iran had asked South Korea's
Hyundai refinery and some Japanese refiners to defer July lifting
cargoes to August.