Bloomberg News

Asia Naphtha Crack Gains; Trafigura Buys Gasoil: Oil Products

November 01, 2011

Nov. 1 (Bloomberg) -- Asia’s naphtha crack spread rose after dropping the most in three years last month. Trafigura Beheer BV bought two gasoil cargoes in Singapore, the region’s biggest oil-trading center.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures rose to $64 a metric ton at 4 p.m. Singapore time from $52.71 at the end of Asian trading yesterday, according to data compiled by Bloomberg. This crack spread, a measure of refining profit, narrowed 59 percent last month, the biggest decline since October 2008.

Vitol Group bought 50,000 barrels of 92-RON gasoline from BP Plc in Singapore at $114.10 a barrel, according to a Bloomberg survey of traders monitoring transactions on the Platts window.

Middle Distillates

Trafigura purchased two 150,000-barrel cargoes of gasoil, or diesel, with 0.5 percent sulfur in Singapore at 80 cents a barrel above benchmark quotes, according to the Bloomberg survey. PetroChina Co. sold to the Amsterdam-based independent trader for loading from Nov. 16 to Nov. 20 and Royal Dutch Shell Plc traded a shipment for Nov. 25 to Dec. 1 loading.

Gasoil’s premium to Asian marker Dubai crude fell 21 cents to $20.13 a barrel at 2:16 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread narrowed for the first time in 10 days.

Jet fuel’s premium to gasoil rose 65 cents to $2.45 a barrel, PVM data showed. This regrade increased the most since Oct. 3 in percentage terms, indicating it is more profitable to produce aviation fuel over diesel.

Fuel Oil

Fuel oil’s discount to Dubai crude widened 29 cents to $3.52 a barrel at 2:16 p.m. Singapore time, based on PVM data. The gap widened the most since Oct. 20, signaling refiners’ losses from turning oil into residual products are growing.

The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged after climbing to $8.25 a ton, PVM said. This viscosity spread was the widest since Oct. 12, meaning bunker, or marine fuel, has advanced less than higher-quality fuel oil.

--Editors: Alexander Kwiatkowski, Christian Schmollinger

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