Indonesia not to import fuel in March
Indonesia not to import fuel in March
SINGAPORE (Reuters): Indonesia will not import any fuel oil for March arrival after failing to buy any cargoes for February, industry sources said on Thursday.
"Indonesia is not buying any fuel oil March. In February it was also zero," one regular supplier to Indonesia said.
Indonesia normally imports an average of about 200,000 tons, or about 1.3 million barrels, of fuel oil a month but this was halved to 100,000 tons in January as the country grappled with its worst economic crisis in decades.
Traders had initially expected state-owned Pertamina to import around 100,000 tons in February but this was canceled as the economic troubles worsened.
Indonesia's 1997 fuel oil imports peaked in October and November, when imports soared to 400,000 tonnes, they said.
Pertamina had said on Tuesday that the size of imports of fuel products would depend on domestic demand and output from local refineries.
Indonesia had raised its refining capacity by about 100,000 barrel per day (bpd) last year to 1.05 million bpd and this, traders said, has allowed the country to cutback its imports.
"At the moment we are reducing imports of fuel products because domestic demand is less," Pertamina general affairs director Hadi Daryono said on Tuesday.
Indonesia had also deferred its February diesel imports and is not expected to buy any diesel on a spot basis in March, traders said.
Meanwhile traders in London said Kuwait sold to European customers some of the term contract middle distillates turned back last week by Indonesia.
They said Wednesday Kuwait Petroleum Corp (KPC) in February had exported some three cargoes of gas oil and two cargoes of jet to European buyers, higher than its usual exports.
The extra volumes were those previously lined up for Indonesia, they said.
The cargoes were sold on a free-on-board Kuwait basis. KPC in Europe had no immediate comment.
Traders said a further Kuwait gas oil cargo earmarked for Indonesia had been diverted to Nepal.