Bloomberg News

Asia Naphtha Crack Rises; Trafigura Buys Gasoil: Oil Products

November 09, 2011

Nov. 9 (Bloomberg) -- Asia’s naphtha crack increased. Trafigura Beheer BV extended its gasoil purchases in Singapore, the region’s biggest oil-trading center.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures rose to $40.84 a metric ton at 6:20 p.m. Singapore time from $28.47 at the end of Asian trading yesterday, according to data compiled by Bloomberg. This crack spread, a measure of processing profit, has dropped about 23 percent this month.

Vitol Group sold 25,000 tons of naphtha for first-half January delivery at $901 a ton to Mabanaft Gmbh & Co., according to a Bloomberg survey of traders who monitored transactions on the Platts system. Glencore International AG sold 50,000 barrels of 92-RON gasoline to Trafigura Beheer BV at $116.90 a barrel.

Middle Distillates

Trafigura bought gasoil, or diesel, with 0.5 percent sulfur for a third day in Singapore, according to the Bloomberg survey. The Amsterdam-based company paid 30 cents a barrel over November quotes to Vitol Group, to load 250,000 barrels between Nov. 24 and Nov. 28.

Gasoil’s premium to Asian marker Dubai crude rose 33 cents to $19.48 a barrel at 2 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread is a measure of refining profit.

Jet fuel’s premium to gasoil fell 5 cents to $1.85 a barrel, PVM data showed. A narrower regrade indicates it is less profitable to produce aviation fuel over diesel.

BP Plc bought 100,000 barrels of jet fuel from Royal Dutch Shell Plc at 10 cents a barrel below benchmark prices, for loading from Nov. 24 to Nov. 28, the Bloomberg survey showed. BP last month was the largest jet-fuel buyer in Singapore, purchasing at least nine cargoes totaling 1.05 million barrels. Shell sold five of those cargoes.

Fuel Oil

Fuel oil’s discount to Dubai crude narrowed 29 cents to $3.22 a barrel at 2 p.m. Singapore time, based on PVM data. The difference widened $1.01 the past two days, signaling losses for refiners turning oil into residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade increased 50 cents to $9.25 a ton, PVM said. This viscosity spread is the widest since Sept. 20, meaning bunker, or marine fuel, has advanced less than higher-quality fuel oil.

--Editor: Mike Anderson.

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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