To store gasoline on the waters off Singapore, three sources said ships have been chartered by Indonesia’s Pertamina. This move is considered a rare move that could benefit the company from the price drop caused by a demand slump due to coronavirus.
To store petrol, the sources said three vessels have been chartered by Pertamina for a six-month period. The vessels are Nordvenus, Scf Prudencia, and BW Zambesi. Pertamina’s wanting to lock in supplies at low prices is likely driving the company’s current move.
On April 22, Benchmark 92-octane petrol prices plunged to $14.35 a barrel. The prices by April 24 had recovered to $16.65 a barrel but were still down 77 percent from the beginning of 2020.
Last year, a monthly average of 1.2 million tonnes of gasoline imported by the state-owned company. Due to a dive in local demand following measures to curb the spread of the virus, the company earlier this month sought to defer gasoline cargoes for April arrival. To buy gasoline from the spot market, 4 tenders issued by Pertamina for May to August delivery.
