Asia’s gasoil crack spread shrank, signaling reduced profit for refiners making the distillate fuel. Hin Leong Trading Pte sold fuel oil for a second day in Singapore, the region’s largest oil-trading center.
The premium of gasoil, or diesel, to Asian marker Dubai crude fell 37 cents to $15.35 a barrel at 2:41 p.m. Singapore time, according to PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, is the narrowest in three days.
Morgan Stanley sold 150,000 barrels of gasoil with 10 parts-per-million of sulfur to BP Plc for loading from March 28 to April 1, according to a Bloomberg survey of traders who monitored transactions on the Platts window. The cargo changed hands at $3.10 a barrel over prices for 0.5 percent sulfur grade.
Jet fuel’s premium to gasoil dropped 5 cents to 10 cents a barrel, PVM said. This regrade is the lowest since Feb. 20, indicating it is less profitable to produce aviation fuel over diesel.
Hin Leong sold 20,000 metric tons of 380-centistoke (N6SHS380) fuel oil to Gunvor Group Ltd. at $738 a ton, according to the Bloomberg survey. Mercuria Energy Ltd. purchased 25,000 tons of the same grade from Koch Industries Inc. at $739 a ton. Both shipments are for March 28 to April 1 loading.
Fuel oil declined 15 cents to $7.81 a barrel below Dubai crude at 2:41 p.m. Singapore time, according to PVM. The discount widened for the fifth time in six days, signaling losses for refiners turning oil into residual products.
The premium of 180-centistoke (N6SHS180) fuel oil to 380-centistoke grade decreased 50 cents to $9.75 a ton, PVM said. This viscosity spread is the narrowest since Feb. 20, meaning bunker, or marine fuel, increased more than higher-quality fuel oil.
Naphtha’s premium to London-traded Brent crude futures increased $1.03 to $119.47 a ton at 5:16 p.m. Singapore time, according to data compiled by Bloomberg. The difference, also known as the crack spread, is the widest in five days.
Glencore International Plc sold 25,000 tons of open- specification naphtha to Vitol Group for first-half May delivery at $1,085.50 a ton, according to the Bloomberg survey. Glencore sold the petrochemical feedstock to Vitol at least four times previously this month.
Idemitsu Kosan Co. plans to start a 140,000 barrel-a-day crude distillation unit at its Hokkaido refinery in northern Japan by the end of this week, said company spokesman Kei Uchikawa. The no. 1 unit was halted March 9 due to a malfunction.
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