Crude prices move up

Crude prices move up

SINGAPORE (Reuters): Asian crude prices moved up yesterday,
supported by expectations of higher utility demand, as the hot
weather prompts increased use of air-conditioners, traders said.

Traders said heavy sweet Indonesian Minas and Widuri crudes
have started trading at premiums of 25-30 U.S. cents per barrel
to the official ICP.

This is higher than the ICP plus 15 cents traded for July
Minas cargoes. In May, Minas traded at discounts to the ICP, but
spot prices firmed, following reduced export allocations from
Indonesian state oil company Pertamina.

Traders said the start-up of the 125,000-bpd Balongan refiner,
expected by the middle of July, could keep Indonesian supplies
tight.

"Supplies may still be small, and there is more utility
demand, so I think prices will be firm," said a Japanese trader.

But some traders were waiting for firmer news of Indonesia's
export availabilities, which should become clearer next week, to
gauge the direction of prices.