RI revises LSWR price

Tue, 02 Apr 1996

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.

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