Dec. 28 (Bloomberg) -- Asia fuel oil traded at the biggest discount to Dubai crude in more than a week while refining profits from gasoil fell to the lowest level in two months. The naphtha crack was little changed.
Fuel oil’s discount to Dubai crude widened 3 cents, or 0.8 percent, to $3.67 a barrel at 2:19 p.m. Singapore time, according to PVM Oil Associates Ltd., a broker. The gap is the biggest since Dec. 16.
Hin Leong Trading Pte bought two cargoes, each containing 20,000 metric tons of 380-centistoke fuel oil, from Vitol Group, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The Singapore-based trader agreed to pay a premium of $9.75 a ton above the average benchmark price in January.
The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged at $11.25 a ton. This viscosity spread fell to $11 a ton on Dec. 22, the lowest in more than a month.
Gasoil’s premium to Dubai crude fell 14 cents, or 0.8 percent, to $16.83 a barrel, according to PVM data. The crack spread, a measure of the refining profit for diesel, is at the narrowest since Oct. 19. Jet fuel traded at parity to gasoil.
Japan naphtha swaps traded at a premium of $95.23 a metric ton to Brent crude futures at 2:19 p.m. Singapore time, based on data compiled by Bloomberg. This crack spread, a measure of profit from making the petrochemical feedstock, was at $95.92 at the end of Asian trading yesterday.
Arcadia Petroleum Ltd. bought 50,000 barrels of 92-RON gasoline from BP Plc at $113.50 a barrel, the Bloomberg survey showed.
--Editors: Paul Gordon, Mike Anderson
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To contact the reporter on this story: Ann Koh in Singapore at firstname.lastname@example.org
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