Pertamina offers LSWR

Pertamina offers LSWR

TOKYO (Reuter): Indonesia's state oil concern Pertamina has
decided to allocate about 3.5 million barrels of February-lifting
low sulfur waxy residue (LSWR) to its affiliates, traders said
yesterday.

The February volume is about 600,000 to 700,000 barrels less
than the January allocation of 4.1 to 4.2 million barrels.

Traders ascribed the tighter allocation for February to the
scheduled resumption of Pertamina's 26,500 barrels-per-day
hydrocracking unit at its Dumai refinery after a maintenance
shutdown. The hydrocracker will resume full operations by early
February, they said.

"Japanese utility demand for LSWR is expected to remain strong
towards February due to the cold weather and some water
shortages," one trader said.

"But the February (LSWR) market seems rather unclear as prices
have lately been volatile," he said.