Bloomberg News

Asia Refining Profit on Naphtha at Two-Month High: Oil Products

December 07, 2011

Dec. 7 (Bloomberg) -- Asia refining margins from naphtha rose to the highest level in two months after a power outage at SK Innovation Co.’s Ulsan refinery disrupted production. Profits from making gasoil also rose. Losses on fuel oil widened.

Light Distillates

December swaps for naphtha, a feedstock for petrochemicals and gasoline, rose $12.50, or 1.4 percent, to $915 a metric ton at 11:51 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a London-based broker.

The swap value was at a premium of $81.50 a ton to Brent oil, up from $79.90 a ton at the end of Asian trading yesterday, according to data compiled by Bloomberg. The crack is at the widest level since Oct. 19.

SK Innovation Co. said it aims to fully restore operations this week at the Ulsan refining and petrochemical complex, South Korea’s largest. A power outage yesterday prompted a partial shutdown.

Middle Distillates

Gasoil’s premium to Dubai crude rose 62 cents, or 3.5 percent, to $18.46 a barrel, PVM data showed.

January swaps for gasoil rose $1.67, or 1.3 percent, to $126.10 a barrel. Jet fuel’s premium to gasoil, also known as the regrade, was unchanged at $1.30 a barrel.

Fuel Oil

High-sulfur fuel-oil swaps rose $4, or 0.6 percent, to $663 a ton, PVM data showed.

Fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, widened to $5.64 from $5.21 a barrel yesterday.

The premium of 180-centistoke fuel oil to the 380- centistoke grade was unchanged at $13.75 a ton.

--Editors: Mike Anderson, Christian Schmollinger.

#<125964.3765640.2.1.95.14779.25># -0- Dec/07/2011 04:25 GMT

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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