BLBG:Malaysia’s Tapis Oil Price to Increase as London Brent Gains
Malaysia’s official selling price for Tapis crude, a benchmark contract in the Asia-Pacific region, is set to rise for the first time in three months, reflecting a rebound in London-traded Brent futures.
The low-sulfur, or sweet, crude will be set at $123.38 a barrel for July, up 1.2 percent from June, according to a Bloomberg News calculation based on a trade formula. State-owned Petroliam Nasional Bhd., or Petronas, will announce the price today, said a company official who asked not to be identified because of internal rules.
Brent crude futures climbed 3.8 percent in July, snapping a two-month losing streak, as concern over the U.S. economy bolstered the investment appeal of commodities. The contract for September settlement on the ICE Futures Europe exchange traded above $118 a barrel today.
The Tapis formula comprises a price-adjustment factor set by Petronas plus the full-month average of dated Brent assessments from Platts. The North Sea marker, also of a sweet variety, is a benchmark crude used in Europe, the Mediterranean and Africa.
Kuala Lumpur-based Petronas sells its Labuan and Miri Light grades at the same price as Tapis, while Bintulu and Dulang are shipped for 30 cents a barrel less.
To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net
