26AUG2019 - NEWS - Indonesia’s Duri crude gets a boost from IMO 2020 demand for LSFO

Indonesia’s Duri crude oil this month traded at strong premiums forAugust and September loading, driven up by blending requirements ahead of theIMO 2020 low sulfur marine fuel regulation, several trade sources said thisweek.

Both the August-loading and September-loading cargoes were sold atpremiums of $7-$8/b to Dated Brent on an FOB basis, sources said, adding thatthe cargoes were sold to trading companies. Prior to this, trade indicationsfor Duri were reported at discounts to Dated Brent. Up to 700,000 barrels of Duri, which is a heavy sweet waxy crude with0.2% sulfur, traded for August and September loading as Indonesia’sstate-owned Pertamina had significantly less requirements during this period,resulting in cargoes being available for the spot market, sources said. Thereare some months when no spot Duri cargoes are offered in the market.