Indonesia’s Pertamina plans to import 11 mil barrels gasoline for Jun, lower from May
Indonesia’s state-owned oil and gas company Pertamina plans to import slightly above 11 million barrels of gasoline for June, steady to lower from May’s planned volume of 11 million-12 million barrels, market sources said late Monday.
The company plans to import around 6.5 million barrels of 88 RON gasoline, 4.7 million barrels of 92 RON gasoline and under 50,000 barrels of 98 RON gasoline for June, a source with knowledge of the matter said.
The slightly lower planned imports were within expectations as gasoline demand typically peaks before and during the Muslim holy month of Ramadan, and eases off after the Eid holiday, market sources said.
Pertamina has yet to issue any spot tender for June, however the company has issued term tenders seeking 1.19 million barrels/month of 88 RON gasoline, 500,000 barrels/month of HOMC 92 RON gasoline and 1.05 million barrels/month of 92 RON gasoline for July to December loading/delivery, according to open tenders seen by Platts.
Slightly lower planned imports from Indonesia coupled with expectations of more exports from China have combined to exert downward pressure on the market.
Sentiment in the Asian gasoline market to that end was heard to have turned increasingly bearish, with sources expecting refining margins for gasoline to remain lackluster for the near term.
The FOB Singapore 92 RON gasoline crack against front month ICE Brent crude futures contract rebounded to $4.94/b at the Asian close Monday from $4.75/b in the previous trading session. The average crack for the week of May 6-10 had fallen to $4.15/b from the average crack of $6.84/b in the week of April 29-May 3, according to S&P Global Platts data.
“Pertamina does not seem to be importing as much, which is bearish news on the demand side. Australia, India and the Philippines are still buying, but it will not likely make up for the total that Indonesia usually imports,” one market participant said.