Refinery output key for Minas

Refinery output key for Minas

SINGAPORE (Reuter): Asian crude sales for prompt trading are expected to slow this week as Middle East grades appear mostly placed, while Indonesian refineries are the focus for Minas and Duri sellers.

The unexpected and prolonged shutdown of the 125,000 barrel- per-day (bpd) crude distillation unit (CDU) at the Balongan refinery and the scheduled shutdown of the 120,000-bpd Dumai refinery for maintenance has led to an overhang of Minas and Duri.

March prices of both plummeted to ICP less 50/60 cents per barrel in recent weeks, but appear steadier now as initial export allocations from Pertamina have been placed.

But traders said two million barrels of Duri have been put into floating storage, leaving players worried on whether the crude is to be released onto the spot market.

The Duri was floating off the Dumai refinery last week and made room for Minas to be put into storage at the refinery. Minas represents 70 percent of Dumai's feedstock and Duri 30 percent.

"If it's dumped you could see a $1.00 discount," one trader said.

But another trader said the Duri was being held pending the start up of the two refineries. Balongan uses mostly Duri for its crude runs.

That left the key question of when Balongan would restart its CDU.

The CDU has failed attempts to restart amid technical problems at an 83,000-bpd residue catalytic cracker at Balongan.