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Tuesday, April 13, 1999

May cuts prop up Gulf crudes 

Nurul Indriani  
SINGAPORE, Apr 12: The Asian crude prices are expected to be propped up this week, finding additional support from the latest round of term cuts for May-loading crude volumes, traders said.

The Middle East crudes were seen firmly supported, after at least two producers announced a series of cuts to their Asian customers for their May term cargoes.

"At the moment, news of producer cuts will be the market's main driving factor," a trader said. Earlier on Monday, Saudi Arabia notified its Japanese term buyers that their May-loading crude volumes would be cut by 15-17 per cent, while South Korea was told of between 16.7-19 per cent cuts.

Separately, Oman also told Japan of an additional 5.32 per cent cut from the nominated volume, totalling 11.02 per cent for May.

But Oman's cuts to South Korea for May varied, with one refiner confirming a cut of 16.72 per cent and another an 18.2 per cent cut.

In the market for regional crudes, light Asian grades could face pressure this week if the jet kerosene rallyfalters. Tapis differentials have been supported at APPI +35 cents per barrel off the back of the jet rally, itself based on refinery outages in the US West Coast and NATO bombing of Yugoslavia.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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