From Bloomberg – Petronas Sets Tapis Crude Oil Price Factor at Record for a Second Month


From Bloomberg, dateline 2010-10-12:

Petroliam Nasional Bhd., Malaysia’s state oil and gas company, increased a price-adjustment factor for its benchmark Tapis crude to a record for a second month.

Petronas, as the Kuala Lumpur-based company is known, raised the factor to $4.20 a barrel for October, up 10 cents from September, said an official today, asking not to be identified because of corporate policy. Last year, the adjustment factor averaged $2.48.

The increase follows a recovery in profit for turning light crude such as Tapis into gasoil, or diesel. The product’s premium to Dubai crude, the Asian benchmark, ended September trading at $11.97 a barrel, the first monthly gain in three, according to brokers PVM Oil Associates. This crack spread climbed to $13.38 today, the highest since Aug. 3.

Petronas includes the Tapis adjustment factor in its formula for calculating monthly crude official selling prices. The other component is the average of twice-weekly assessments compiled by the Asian Petroleum Price Index, a Hong Kong-based panel of traders.

This entry was posted on Saturday, October 23rd, 2010 at 6:00 am and is filed under Malaysia, oil and gas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a comment