Indonesian oil steady, low demand expected

Indonesian oil steady, low demand expected

SINGAPORE (Bloomberg): Indonesian Crude premiums were steady today on expectations demand from China and Japan would remain limited next week, traders said.

In the spot market, Indonesian benchmark Minas premiums were assessed at 85 US cents a barrel more than the Indonesian Crude Prices. Outright values rose 30 cents from yesterday to $26.65 a barrel.

Import demand from Japan and China would likely remain limited because buyers in those countries had already filled their June requirements ahead of the holidays, traders said.

The Japanese "Golden Week" holiday started May 3 through May 5, and the Chinese Labor day celebrations started May 1 and will last through May 7.

Still, one trader expected Japanese buyers to purchase additional June-loading cargoes, which he said would boost premiums.

Indonesian Duri crude for June was assessed at $1.40 a barrel more than the ICP, 10 cents lower than May-loading barrels. Outright prices rose 20 cents to $25.95 a barrel.

Although demand from fuel oil blenders remained strong, participants said June-loading Duri premiums weren't likely to rise to levels discussed for May cargoes. Duri crude yields a high percentage of low-sulfur waxy residue.

Taiwan's state-owned oil company, Chinese Petroleum Corp., through a tender purchased Duri crude for June-delivery, which covered its requirements, an official at the company said.

CPC bought one 270,000-barrel cargo of Duri crude at $1.35- $1.45 a barrel more than the ICP, the official said. The delivery port will be Kaohsiung, Taiwan.

The tender closed on May 4, with validity until May 5.