RI revises LSWR price

RI revises LSWR price

TOKYO (Reuter): Indonesia has revised its low sulfur waxy
residue (LSWR) pricing formula effective from its April-loading
cargoes, which will have a 35 U.S. cent premium compared with the
former 20 cent premium, traders in Tokyo said yesterday.

Under the new pricing formula, LSWR prices will be based 25
percent each on market pricing system Platt's, Petroleum Argus,
Rim, and Far East Oil Product Index quotes, with a 35 cent per
barrel premium, they said.

Previously, Indonesia's state-oil concern Pertamina calculated
its LSWR prices using a formula based 50 percent on Platt's and
the other half on Petroleum Argus quotes, with a 20-cent premium,
they said.

Traders said the diversification of price sources would
decrease the possibility of price manipulation in the future.