Asia Gasoil Crack Falls; PetroChina Sells Fuel: Oil Products
February 08, 2012, 12:43 PM ESTBy Yee Kai Pin and Ann Koh
Feb. 8 (Bloomberg) -- Asia’s gasoil crack spread narrowed for the first time in three days, signaling reduced profit for refiners making the distillate fuel. PetroChina Co. sold fuel oil at the lowest premium reported in more than four months.
Middle Distillates
The premium of gasoil, or diesel, to Asian marker Dubai crude fell 44 cents to $18.24 a barrel at 2:26 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread is a measure of refining profit.
Royal Dutch Shell Plc sold 150,000 barrels of gasoil with 0.5 percent sulfur to Glencore International Plc, based on a Bloomberg survey of traders who monitored transactions on the Platts window. Shell was paid 30 cents a barrel above benchmark quotes, the same premium it received in the most recent reported transaction Feb. 3. The cargo will load from Feb. 24 to Feb. 28.
Jet fuel was unchanged after dropping to 65 cents a barrel below gasoil, the biggest discount so far this month, PVM data showed. This regrade has been negative since Jan. 16, indicating it is unprofitable to produce aviation fuel over diesel.
Fuel Oil
PetroChina sold 20,000 metric tons of 180-centistoke fuel oil to Vitol Group for Feb. 27 to March 2 loading, according to the Bloomberg survey. The cargo changed hands at $9 a ton over benchmark quotes, the lowest premium reported for this grade since Oct. 6.
Fuel oil declined 20 cents to $3.78 a barrel below Dubai crude at 2:26 p.m. Singapore time, based on PVM data. That’s the biggest discount since Jan. 5, signaling widening losses for refiners turning oil into residual products.
The premium of 180-centistoke fuel oil to 380-centistoke grade increased 25 cents to $9.75 a ton, PVM said. This viscosity spread widened for a second day, meaning bunker, or marine fuel, advanced less than higher-quality fuel oil.
Light Distillates
Naphtha’s premium to London-traded Brent crude futures fell to $112.74 a ton at 3 p.m. Singapore time from $118.32 yesterday, according to data compiled by Bloomberg. This crack spread declined from the widest in four days.
Total SA, the biggest reported seller of 95-RON gasoline in Singapore this month, sold 50,000 barrels to Gunvor Group Ltd. at $127.30 a barrel and 50,000 barrels to Vitol at $127.40, according to the Bloomberg survey.
Shell, the largest reported buyer of 95-RON gasoline last month, purchased 50,000 barrels from Arcadia Petroleum Ltd. at $128.50 a barrel, the survey showed. Gunvor sold 50,000 barrels of 92-RON grade to BP Plc at $126.30 a barrel.
Refinery News
JX Nippon Oil & Energy Corp., Japan’s biggest refiner, plans to idle five crude-distillation units at four refineries for maintenance this year, according to a company official, who asked not to be identified because the information is confidential.
Shell plans to clean up a “light sheen” of oil and water near its Clyde refinery in Sydney, Australia, after heavy rainfall, spokesman Ben Scott said.
Tenders
Vitol bought 35,000 tons of naphtha for March loading from Oil & Natural Gas Corp., India’s largest state-owned oil explorer, according to two traders. Vitol paid $36 to $37 a ton more than Middle East prices.
--With assistance from Pratish Narayanan in Mumbai. Editors: Christian Schmollinger, Mike Anderson
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
