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.