Bloomberg News

Asia Gasoil Profits Surge; Shell Buys Gasoline: Oil Products

September 30, 2011

Sept. 30 (Bloomberg) -- Refining profits from gasoil rose the most in 17 weeks in Asia, while losses from processing crude into fuel oil shrank for a fourth week after Royal Dutch Shell Plc shut refinery units at its Singapore plant Sept. 28 because of a fire. The refiner bought gasoline on the Platts ‘window.’

Middle Distillates

Gasoil’s premium to Dubai crude oil rose $1.91, or 12 percent, to $18.30 a barrel this week, according to data from PVM Oil Associates Ltd., a London-based broker. This crack spread, a measure of refining profit, increased the most since the week ended June 3.

Jet fuel’s premium to gasoil, known as the regrade, fell 5 cents to $1.70 a barrel, according to PVM.

Shell said yesterday that it has extinguished a fire that had raged for two days at its largest oil refinery and that it’s shutting processing units at the Singapore plant as a precaution.

Light Distillates

Shell purchased 50,000 barrels of 95-RON gasoline from BP Plc at $119.60 a barrel on the Platts trading ‘window’ in Singapore today, according to traders monitoring transactions on the pricing system.

Naphtha’s premium to London-traded Brent crude futures rose to $120.33 a metric ton at 6 p.m. Singapore time from $119.81 at the end of Asian trading on Sept. 23, based on data compiled by Bloomberg.

Fuel Oil

Fuel oil’s discount to Dubai crude shrank $1.43, or 35 percent, to $2.72 a barrel this week, according to PVM Oil Associates Ltd. The gap has narrowed for a fourth week, the longest weekly rally since April.

The premium of 180-centistoke fuel oil to 380-centistoke grade dropped to $7 a ton from $8.25 a week earlier, as the price of utility-grade fuel oil fell more than shipping fuel. This viscosity spread has narrowed for a fourth week.

--Editor: Ryan Woo. To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

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


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