SINGAPORE, Aug 27 (Reuters) - Differentials for Asia Pacific
crudes typically used as a direct burn in power stations were
expected to be pressured lower due to weaker than anticipated
demand from Japanese utilities, traders said.
Indonesia's Duri crude, typically reflective of direct-burn
crudes in the region, was valued at premium of about $1-$1.50
over the Indonesian Crude Price (ICP), by some sellers.
Buyers however were more inclined to only deal at parity,
traders said.
"The demand for direct-burn crudes, based off demand from
Japan has been overdone," a Singapore-based trader said.
"It's not just the direct-burn Vietnamese, Indonesian crudes
which are struggling, but low-sulphur fuel oil, LSWR
(low-sulphur waxy residue) players are taking a hit for
overestimating demand in Japan."
Russian light sweet crudes remained supported, with
valuations pegged around $4.70 a barrel over the Dubai
benchmark, nearly 75 cents over the deals transacted for
September loading cargoes.
These crudes were largely supported by the strength of
refining margins for middle distillates, traders said.
Asia gas oil cracks rose 57 cents to $20.12, while naphtha
margins strengthened $1.59 to $7.44 a barrel.
* MARKET NEWS
- Tropical Storm Isaac swirled into the Gulf of Mexico on
Monday, threatening to disrupt U.S. offshore oil and gas
supplies and strengthen into a powerful hurricane that could
make landfall near Louisiana almost seven years to the day after
Katrina struck.
- Japan's Seibu Oil Co Ltd, a Showa Shell Sekiyu KK
group refiner, started maintenance at its sole 120,000
barrels-per-day (bpd) Yamaguchi refinery in western Japan on
Monday, Showa Shell said.
- Venezuela's Amuay refinery will not restart operations
until it completely extinguishes a fire caused by an explosion
on Saturday, a top refining official with state oil company
PDVSA said on Sunday.
CRUDE Price Prev Change %
change
OCT Brent 114.86 114.63 0.23 0.20%
OCT Brent/Dubai EFS 3.80 4.08 -0.28
DUB-EFS-1M
