RTRS:Asia-Pacific Crude-Indonesian grades slow to move
SINGAPORE, Aug 30 (Reuters) - Indonesian crude stayed under
pressure in Asia on Thursday on weak demand in Japan and as
refiners shunned the grades on fears that prices could rise.
Japanese utilities, regular buyers of Indonesian crude, have
cut back their purchases on a mild summer and as power-saving
measures reduced electricity consumption. The companies are also
using more liquefied natural gas (LNG) as they delayed
maintenance at gas-fired power plants to autumn from summer, a
trader said.
"Indonesian grades are being isolated because of the
benchmark," a second trader said, adding that most refiners
prefer to buy crude priced on dated Brent.
Sellers of Indonesian crude are also reluctant to offer on a
dated Brent basis for fear they may suffer losses if the
Indonesian Crude Price (ICP) surges in October.
Indonesia is the only southeast Asian oil producer to use a
regional price marker. Vietnam could complete a switch of all
its crude next year to dated Brent, joining oil producers
Malaysia, Australia and Papua New Guinea.
Traders are also closely watching a potential restart of oil
production in South Sudan that could add more supply of medium
and heavy sweet crude.
South Sudan's Upper Nile oilfields may take up to half a
year to resume production after the government signs a final
deal on export fees with Sudan, South Sudan's oil minister said.
South Sudan Oil Minister Stephen Dhieu Dau said he expected
the government to sign a final agreement by Sept. 22, a deadline
set by the U.N. Security Council.
* TENDERS
- Vietnam's PV Oil has sold 200,000 barrels of Rong Doi
condensate for October at a narrower discount than a previous
deal for an August cargo as naphtha cracks improved, traders
said.
The cargo to load on Oct. 24-30 was sold to a North Asian
refiner at a discount of about $3.50 a barrel to dated Brent,
they said.
* MARKET NEWS
- Japanese imports of crude oil from Iran fell sharply in
July, but continued despite a halt in loadings by Japanese
buyers to avoid running foul of a European Union ban on insuring
cargoes from the Middle East nation.
- Brazil's state-led oil company, Petrobras, is struggling
to rein in rising imports and soaring refinery costs as it tries
to meet higher fuel demand in the world's sixth-largest economy,
company officials said.
CRUDE Price Prev Change
OCT Brent 112.99 111.95 +1.04
OCT Brent/Dubai EFS DUB-EFS-1M 3.43 3.35 +0.08
