Bloomberg News

PetroChina Sells Gasoil; Naphtha Crack Narrows: Oil Products

January 09, 2012

Jan. 9 (Bloomberg) -- PetroChina Co. sold gasoil and fuel- oil cargoes in Singapore, Asia’s biggest oil-trading center. The naphtha crack fell for the first time in three days, signaling reduced profit from making the petrochemical feedstock.

Fuel Oil

PetroChina sold 20,000 metric tons of 380-centistoke fuel oil to Brightoil Petroleum Holdings Ltd. for loading between Jan. 30 and Feb. 3, according to a Bloomberg survey of traders who monitored transactions on the Platts window. The price was $12 a ton over benchmark quotes, the lowest reported premium since Nov. 18.

Fuel oil’s discount to Asian marker Dubai crude widened 32 cents to $3.50 a barrel at 2:19 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. The gap last week widened for the first time in five weeks.

The premium of 180-centistoke fuel oil to 380-centistoke grade fell $1 to $12.25 a ton, PVM said. This viscosity spread narrowed for the first time in seven days, signaling bunker, or marine fuel, advanced less than higher-quality fuel oil.

Middle Distillates

Hin Leong Trading Pte bought 150,000 barrels of gasoil, or diesel, with 0.5 percent sulfur from PetroChina at 70 cents a barrel over benchmark quotes, according to the Bloomberg survey. The cargo is for loading from Feb. 1 to Feb. 5.

Gasoil’s premium to Dubai crude rose 31 cents to $18.73 a barrel at 2:19 p.m. Singapore time, based on PVM data. This crack spread, a measure of refining profit, is the widest in a month.

Jet fuel climbed 25 cents to 10 cents a barrel above gasoil, PVM said. This regrade ended last week’s trading at a discount, indicating it was unprofitable to produce aviation fuel over diesel.

Light Distillates

Statoil ASA sold 25,000 tons of open-specification naphtha for delivery in the first half of March to Cargill Inc. at $968 a ton, according to the Bloomberg survey. This is the first time in at least a year that Norway’s biggest oil company has sold a cargo on the trading system, data compiled by Bloomberg showed.

Royal Dutch Shell Plc bought 50,000 barrels of 95-RON gasoline from PetroChina at $123.80 a barrel, for Jan. 26 to Jan. 30 loading, the survey showed. Europe’s largest oil company also purchased 50,000 barrels of 97-RON grade, for Jan. 31 to Feb. 4, from Total at $126.70 a barrel.

Trafigura Beheer BV sold 50,000 barrels of 97-RON gasoline to Total SA at a premium of $6.30 a barrel to 92-RON prices, the survey showed. PetroChina bought 50,000 barrels of 92-RON grade for Jan. 26 to Jan. 30 from Morgan Stanley at $120.30 a barrel.

Benchmark Japan naphtha swaps were at a premium of $98.50 a ton to Brent crude futures at 2:20 p.m. Singapore time, Bloomberg data showed. This crack spread was $98.70 on Jan. 6.

--Editors: Christian Schmollinger, Alexander Kwiatkowski

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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