Bloomberg News

Petronas Raises Tapis Oil-Price Factor to Record as Diesel Gains

January 12, 2012

Jan. 12 (Bloomberg) -- Petroliam Nasional Bhd., Malaysia’s state oil company, increased a price-adjustment factor for its flagship Tapis crude to a record high as profits rise for refiners making diesel.

Petronas, as the Kuala Lumpur-based company is known, set the so-called alpha at $8.50 a barrel for January, an official said today, asking not to be identified because of internal rules. It was $7.50 in December and averaged $5.90 in 2011.

Diesel’s premium to Asian benchmark Dubai crude has climbed 7.6 percent this year to $18.63 a barrel, according to data from PVM Oil Associates Ltd., a London-based broker. This so-called gasoil crack spread averaged $18.61 last year.

Petronas includes the Tapis adjustment factor in its monthly calculations of official selling prices. The formula is tied to Brent produced in the North Sea, a benchmark grade for Europe, the Mediterranean and Africa.

--Editors: Paul Gordon, Christian Schmollinger

To contact the reporter on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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