Bloomberg News

Asia Gasoil Refining Profits Rise for a Ninth Day: Oil Products

October 31, 2011

Oct. 31 (Bloomberg) -- Profits gained for a ninth day for Asian gasoil refiners, the longest rising streak in at least five years, as demand for heating fuels increased before winter in the north. Losses from making fuel oil narrowed.

Middle Distillates

Gasoil’s premium to Dubai crude increased $1.50, or 7.8 percent, to $20.85 a barrel at 12:01 p.m. Singapore time, according to data from PVM Oil Associates Ltd, a London-based broker. The spread, a measure of the profit from producing the fuel, widened for the longest stretch since Bloomberg began tracking the data in August 2006.

November swaps for gasoil fell 55 cents, or 0.4 percent, to $126.05 a barrel, PVM data showed. Jet fuel’s premium to gasoil, or the regrade, rose to $1.90 a barrel, up 5 cents.

Front-month heating oil futures have risen 8.9 percent in October, the first monthly gain in three. Prices fell 0.5 percent to $3.0437 a gallon at 11:23 a.m. Singapore time on the New York Mercantile Exchange.

Fuel Oil

Fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, shrank 59 cents, or 16 percent, to $3.01 a barrel, PVM data showed. The spread is at the narrowest in almost four weeks.

High-sulfur fuel-oil swaps fell $9.50, or 1.4 percent, to $664.25 a metric ton, PVM data showed. The premium of 180- centistoke fuel oil to the 380-centistoke grade was unchanged at $7.75 a ton.

Light Distillates

November swaps for naphtha, a petrochemicals and gasoline feedstock, fell $14.25, or 1.6 percent, to $864.75 a ton, PVM data showed. The swaps value was at a premium of $43.77 a ton above Brent oil, according to Bloomberg calculations. This crack spread was at $40.53 a ton on Oct. 28.

--Editors: Mike Anderson, Paul Gordon. 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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