Bloomberg News

Asia Fuel Oil Discount Widens, Gasoil Crack Gains: Oil Products

July 06, 2012

Asia fuel oil’s discount to crude widened to the most in a month, signaling increased losses for refiners making residual products. The gasoil crack gained.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 56 cents to $1.71 a barrel below Asian marker Dubai crude at 10:18 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. That’s the largest discount since June 6.

Fuel oil swaps for August fell $4.75, or 0.8 percent, to $604.75 a metric ton, PVM said. The premium of 180-centistoke fuel oil to 380-centistoke grade climbed 25 cents to $10.75. A widening viscosity spread indicates bunker, or marine fuel, declined more than higher-quality supplies used in power stations.

Light Distillates

Naphtha swaps for August rose $17.50, or 2.2 percent, to $817.50 a ton, according to PVM. That’s the highest since May 31.

Naphtha’s premium to London-traded Brent crude futures advanced $22.70 to $64.02 a ton, according to data compiled by Bloomberg. This crack spread, a measure of processing profit, was the widest since May 23.

Gasoline’s premium to naphtha yesterday declined $1.02 to $16.21 a barrel, data compiled by Bloomberg showed. A narrower reforming margin means it is less profitable to make motor fuel.

Middle Distillates

The premium of gasoil, or diesel, to Dubai crude gained 7 cents to $17.30 a barrel, according to PVM.

Gasoil swaps for August declined 12 cents to $114.25 a barrel, PVM data showed. Jet fuel’s premium to gasoil, or the regrade, was unchanged after rising to $1.

To contact the reporter on this story: Winnie Zhu in singapore at wzhu4@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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