Nov. 2 (Bloomberg) -- Asia refining profits from naphtha declined on signs that petrochemical demand is slowing. Trafigura Beheer BV bought gasoil for a second day in Singapore, the region’s largest oil-trading center.
Naphtha’s premium to London-traded Brent crude futures, or the crack spread, fell to $54.27 a metric ton at 6:30 p.m. Singapore time from $56.14 a ton at the end of Asian trading yesterday, according to data compiled by Bloomberg.
Royal Dutch Shell Plc sold 25,000 tons of naphtha for delivery in the second half of December at $881.50 a ton to Cargill Inc, according to a survey of traders who monitored transactions on the Platts window today. Europe’s biggest oil company bought 50,000 barrels of 97-RON gasoline from Mercuria Energy at $121.20 a barrel.
BP Plc sold 50,000 barrels of 92-RON to Vitol Group at $115.70 a barrel.
Trafigura paid 80 cents a barrel over benchmark quotes for gasoil, or diesel, with 0.5 percent sulfur, according to the Bloomberg survey. That premium is down from 90 cents yesterday. The Amsterdam-based independent trader bought 250,000 barrels from BP for Nov. 17 to Nov. 21 loading and 150,000 barrels for Nov. 19 to Nov. 23 from Shell.
Gasoil’s premium to Asian marker Dubai crude dropped 37 cents to $19.60 a barrel at 2:16 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread narrowed for a second day.
Jet fuel’s premium to gasoil was unchanged after rising to $2.20 a barrel, PVM data showed. This regrade was the highest in a week, indicating it is profitable to produce aviation fuel over diesel.
Hin Leong Trading Pte bought 20,000 tons of 380-centistoke fuel oil from BP in Singapore at $7.50 a ton over November quotes for loading from Nov. 27 to Dec. 1, according to the Bloomberg survey. The closely held trader last month was the largest buyer, purchasing at least 18 cargoes totaling 360,000 tons.
Fuel oil’s discount to Dubai crude widened 22 cents to $3.35 a barrel at 2:16 p.m. Singapore time, based on PVM data. The gap increased the most since Oct. 24, signaling refiners’ losses from turning oil into residual products are growing.
The premium of 180-centistoke fuel oil to 380-centistoke grade climbed 50 cents to $8.75 a ton, PVM said. This viscosity spread was the widest since Sept. 20, meaning bunker, or marine fuel, has gained less than higher-quality fuel oil.
--Editors: Alexander Kwiatkowski, Mike Anderson
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