Bloomberg News

Asia Fuel-Oil Discount Widens; BP Sells Gasoline: Oil Products

December 15, 2011

Dec. 15 (Bloomberg) -- Asia fuel oil’s discount to crude widened, signaling losses for refiners turning oil into residual products. Royal Dutch Shell Plc bought gasoline for a second day in Singapore, the region’s biggest oil-trading center.

Fuel Oil

Fuel oil’s discount to Asian marker Dubai crude widened 54 cents to $6.01 a barrel at 3:20 p.m. Singapore time, according to PVM Oil Associates Ltd., a broker. The gap has increased 9.1 percent so far this week.

The premium of 180-centistoke fuel oil to 380-centistoke grade fell 50 cents to $12 a metric ton, PVM said. A narrowing viscosity spread means bunker, or marine fuel, declined less than higher-quality fuel oil.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures slid $6.48 to $109.80 a ton at 5:30 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of profit from making the petrochemical feedstock, yesterday was the widest since September.

Shell bought 50,000 barrels of 95-RON gasoline from Total SA, paying $112.95 a barrel to load from Jan. 2 to Jan. 6, according to a Bloomberg survey of traders monitoring transactions on the Platts window. Europe’s largest oil company has purchased at least 300,000 barrels of this grade so far this month, the most among buyers in Singapore.

BP Plc sold a similar-sized gasoline cargo to ConocoPhillips, receiving $113.05 a barrel for Jan. 1 to Jan. 5 loading, the survey showed.

Middle Distillates

The premium gasoil, or diesel, to Dubai crude dropped 64 cents to $17.86 a barrel at 3:20 p.m. Singapore time, according to PVM. This crack spread gave up all of yesterday’s gains.

Jet fuel’s premium to gasoil decreased 5 cents to 75 cents a barrel, PVM data showed. This regrade is the lowest so far this week, indicating it is less profitable to produce aviation fuel over diesel.

--Editor: Mike Anderson.

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


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