Bloomberg News

Asia Naphtha Crack Extends Drop; BP Sells Gasoil: Oil Products

February 13, 2012

Feb. 13 (Bloomberg) -- Asia’s naphtha crack spread extended losses, signaling reduced profit for refiners making the petrochemical feedstock. BP Plc sold gasoil in Singapore, the region’s largest oil-trading center.

Light Distillates

Japan naphtha’s premium to London-traded Brent crude futures fell to $122.73 a metric ton at 3 p.m. Singapore time from $126.44 on Feb. 10, according to data compiled by Bloomberg. The crack spread, a measure of refining profit, dropped 2.7 percent last week.

Total SA, the biggest reported seller of 92-RON gasoline in Singapore so far this month, sold 50,000 barrels to BP at $130 a barrel, based on a Bloomberg survey of traders who monitored transactions on the Platts window.

Gracewood International Ltd. sold 50,000 barrels of 95-RON gasoline to Vitol Group at $131.90 a barrel, the survey showed.

Middle Distillates

BP sold 150,000 barrels of gasoil, or diesel, with 0.5 percent sulfur to Trafigura Beheer BV, according to the Bloomberg survey. The cargo, for loading from March 1 to March 5, changed hands at 30 cents a barrel above quotes for Feb. 29 to March 6.

Gasoil’s premium to Asian marker Dubai crude declined 11 cents to $17.85 a barrel at 2:19 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread narrowed for a third day.

Jet fuel slid 5 cents to 75 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

Fuel oil decreased 24 cents to $3.15 a barrel below Dubai crude at 2:21 p.m. Singapore time, according to PVM. The discount widened for the first time in four days, signaling losses for refiners turning oil into residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade rose $1 to $11.50 a ton, PVM said. This viscosity spread gained the most since Jan. 3, meaning bunker, or marine fuel, increased less than higher-quality fuel oil.

Tenders

Hindustan Petroleum Corp., India’s third-largest state refiner, offered to sell as much as 30,000 tons of fuel oil and 30,000 tons of naphtha for loading in March, according to documents obtained by Bloomberg News.

--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: Christian Schmollinger at christian.s@bloomberg.net


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