RI's LSWR allocation

RI's LSWR allocation

SINGAPORE (Reuter): Indonesia's state-owned oil company Pertamina has allocated an additional 700,000 barrels of low sulfur waxy residue (LSWR) to its affiliates for April loading, industry sources said yesterday.

The extra allocation is expected to add further downward pressure on prices in an already bearish market as regional demand is at a seasonal low.

Sources were hard pressed to explain the extra cargoes as there no reports of refineries having problems with their crackers.

"The stock built up as some allocations are carried forward and as some people underlift over the past two months," one source said.

As a result, prices have slumped from to below $15.50 per barrel from an early week high of $16.25, traders said.