Petronas is reviewing its crude price formula, paving the way for a change for the first time in eight years, industry sources said yesterday.
The move comes after two other South-East Asian producers – Vietnam and Indonesia – said they planned to review their price formulae, abandoning volatile local benchmarks in favour of European bellwether Brent to price their crudes.
Petronas has been using 100% Tapis prices from the Asian Petroleum Price Index (APPI) since 2002.
The company has sought feedback from market participants to change the formula to 25% Tapis APPI and 75% of prices from Japan’s RIM and Platts. Other benchmarks such as dated Brent and Dubai, which have higher liquidity, may be considered. — Reuters