Bloomberg News

Asia Fuel-Oil Refining Losses at 20-Month Low: Oil Products

October 04, 2011

Oct. 4 (Bloomberg) -- Asia refining losses from fuel oil narrowed to the lowest in almost 20 months while profits from gasoil were near the highest in more than four weeks after Royal Dutch Shell Plc shut refinery units in Singapore.

Fuel Oil

Fuel oil’s discount to Dubai crude narrowed 8 cents, or 3.2 percent, to $2.30 a barrel at 11:04 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a London-based broker. The discount is the smallest since Feb. 8, 2010.

High-sulfur 180-centistoke fuel-oil swaps for October fell $7, or 1.1 percent, to $606.50 a ton, PVM data showed.

The premium of 180-centistoke fuel oil to 380-centistoke grade rose 75 cents to $8.50 a metric ton. The wider viscosity spread indicates bunker fuel prices fell more than higher- quality fuel oil.

Middle Distillates

Gasoil’s premium to Dubai crude oil was at $18.29, down 2 cents, PVM data showed. This crack spread, a measure of refining profit from the fuel, rose to $18.31 a barrel yesterday, the highest since Sept. 1.

October swaps for gasoil dropped $1.25, or 1.1 percent, to $113.90 a barrel. Jet fuel’s premium to gasoil, or the regrade, rose 5 cents to $2.85 a barrel.

Light Distillates

October swaps for naphtha, a petrochemicals and gasoline feedstock, fell $8.75, or 1 percent, to $853 a ton, PVM data showed.

Naphtha’s premium to London-traded Brent crude futures fell to $92.82 a ton from $102.29 at the end of Asian trading yesterday, based on data compiled by Bloomberg.

--Editor: Christian Schmollinger

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

To contact the editor responsible for this story: Paul Gordon in Hong Kong at pgordon6@bloomberg.net


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