Price of Minas crude down on high RI export allocations
Price of Minas crude down on high RI export allocations
SINGAPORE (Reuters): The price of Asia's heavy sweet Minas
crude weakened yesterday, on slightly larger than expected August
export allocations from Indonesia, traders said.
"The market was not expecting Minas to be so much, it's going
to pull prices down," said one trader.
Traders said that offers for August Minas were currently
around 45 to 50 cents per barrel over the ICP, compared to the
last August trades done at ICP +60 cents.
Traders said that Minas allocations from the Indonesian state
oil company Pertamina to its affiliates and term buyers totaled
31,900 barrels-per-day (bpd) for August, higher than the 28,300
bpd allocated for July.
They also said that 21,000 bpd of Duri were allocated for
August.
This compares to the 51,000 bpd allocated for July, as
expectations of a full startup of the 125,000 bpd Balongan
refinery increased domestic demand.
Technical problems had led to a shut down of the refinery's
residue catalytic cracker (RCC) in May, while the crude
distillation unit was operating at 60 percent.
Pertamina also allocated 4,600 bpd of Widuri, 4,000 bpd of
Cinta and 9,700 of Bontang Condensate.
For July, the state oil company allocated 7,000 bpd of Widuri,
9,000 bpd of Cinta and 8,100 bpd of Bontang.
Traders said that although the August allocations of Duri,
Widuri and Cinta were lower month on month, the volumes were
within market expectations, limiting the effects on current spot
prices.
August Widuri has been trading at strong premiums of around 60
cents to the ICP, while Duri was around 45 cents over ICP.
Traders said that Pertamina failed to allocate any barrels to
its affiliates Perta and Indoil, for the second month in a row.
Last month, Pertamina has said it would sever its contracts
with the two affiliates, who are majority owned by friends and
family members of former President Soeharto.
On light crudes, traders said August Tapis was sold at a small
premium to Tapis APPI quotes, but that could not be confirmed.
The Middle East crudes were quiet apart from earlier reported
trades of September Murban.