Pertamina sells LSWR

Pertamina sells LSWR

SINGAPORE (Reuter): Indonesia's state oil company, Pertamina, has allocated an additional 300,000 barrels of low sulfur waxy residue (LSWR) for May exports, industry sources said.

The exports will add to the 3.7 million barrels that Pertamina announced last week for May allocations.

Sources said Pertamina has not issued a formal notification of the extra availabilities, but company officials have verbally informed affiliates.

Traders said the additional allocation would help ease the current tight market and could push premiums down to around 50 cents over Singapore quotes from the current $0.70/$1.00.

Spot LSWR prices in the Singapore market rose more than US$2 per barrel in April with strong demand seen from Japan and the U.S..

Traders said U.S refiners were seeking LSWR supplies in the Far East market as refining feedstock.

They said refineries and nuclear power plants shutdowns in Japan had helped to boost prices in April.