Jan. 12 (Bloomberg) -- PetroChina Co. sold fuel-oil cargoes in Singapore, Asia’s biggest oil-trading center. Gasoil’s crack spread shrank the most in more than two weeks, signaling reduced profit for refiners making the distillate fuel.
PetroChina sold three 20,000-metric ton cargoes of 180- centistoke fuel oil to BP Plc in Singapore, according to a Bloomberg survey of traders who monitored transactions on the Platts window. China’s second-largest oil trader paid $732 a ton to load one cargo between Feb. 1 and Feb. 5 and $728 a ton for two shipments for Feb. 7 to Feb. 11.
Fuel oil’s discount to Asian marker Dubai crude widened 36 cents to $1.76 at 3:20 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. A wider gap indicates losses for refiners turning oil into residual products.
The premium of 180-centistoke fuel oil to 380-centistoke grade slid 25 cents to $13.25 a ton, PVM said. A narrower viscosity spread means bunker, or marine fuel, climbed more than higher-quality fuel oil.
Royal Dutch Shell Plc sold 150,000 barrels of gasoil, or diesel, with 0.5 percent sulfur to China International United Petroleum & Chemical Co., or Unipec, in Singapore, according to the Bloomberg survey. Europe’s biggest oil company paid 50 cents a barrel over benchmark quotes, a reduced premium from a transaction yesterday. The cargo is for Jan. 27 to Jan. 31.
Shell bought a similar-sized shipment with 10 parts-per- million of sulfur at a premium of $2.70 a barrel, the survey showed. This grade is known as ultra-low-sulfur diesel.
Gasoil’s premium to Dubai crude dropped 64 cents to $18.63 a barrel at 3:20 p.m. Singapore time, PVM data show. This crack spread, a measure of processing profit, narrowed the most since Dec. 27.
Jet fuel’s premium to gasoil declined 10 cents to 30 cents a barrel, PVM said. This regrade rose 55 cents over the previous three days, signaling it was more profitable to produce aviation fuel over diesel in that period.
BP sold two 50,000-barrel cargoes of 92-RON gasoline in Singapore for Jan. 27 to Jan. 31 loading, according to the Bloomberg survey. Vitol Group bought one cargo at $120.24 a barrel and Gracewood International Ltd. paid $120.05 for the other shipment.
Shell purchased a 25,000-ton, open-specification naphtha contract for first-half March delivery from Mabanaft GmbH at $953 a ton, the survey showed.
Cosmo Oil Co. resumed partial operations at its 220,000 barrel-a-day Chiba refinery, which was shut by a fire caused by the March 11 earthquake in Japan. The refiner started the No. 10 fuel-oil hydro-desulfurization unit, a vacuum gasoil hydro- desulfurization plant and two facilities that produce hydrogen, according to a statement on its website today.
Unipec bought 11,000 tons of naphtha from Bharat Petroleum Corp. at a discount of $31 a ton to Middle East prices, said two traders. Bharat’s naphtha loaded at Haldia port is of a lower quality than its shipments from other ports and is typically used to make gasoline rather than for producing petrochemicals. Glencore International Plc won a tender last year for a similar cargo and paid a discount of about $34 for December loading.
--With assistance from Pratish Narayanan in Mumbai. Editor: Alexander Kwiatkowski, Mike Anderson.
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