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.