Bloomberg News

Asia’s Naphtha Profits Rise; Fuel Oil Losses Widen: Oil Products

August 16, 2012

Refiners’ profits from producing naphtha in Asia rose to the highest level in more than three months. Losses from making fuel oil widened.

Light Distillates

Japan naphtha’s premium to London-traded Brent crude futures rose $25.55, or 41 percent, to $87.97 a metric ton at 12:50 p.m. Singapore time, according to data compiled by Bloomberg. The premium is the widest since May 4.

Naphtha swaps for September gained $25.25, or 2.7 percent, to $963.50 a ton, according to data from PVM Oil Associates Ltd., a broker.

In Singapore, gasoline’s premium to naphtha closed at $22.66 a barrel yesterday, falling for the first time in six days, Bloomberg data showed. The premium, or reforming margin, widened to $26.27 on Aug. 17, the biggest in 10 months. A wider gap signals it’s more profitable for producers to make motor fuel from naphtha.

Middle Distillates

The premium of gasoil to Dubai crude rose 2 cents, or 0.1 percent, to $19.15 a barrel, PVM data showed. Gasoil swaps for September gained $2.10, or 1.6 percent, to $130.15 a barrel.

Jet fuel’s premium to gasoil fell for a second day, PVM data showed. The spread, or regrade, dropped 10 cents to 90 cents a barrel, indicating it’s less profitable to produce aviation fuel over diesel.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 31 cents to $3.64 a barrel, PVM data showed. Fuel oil swaps for September rose $11.25, or 1.7 percent, to $681.75 a ton.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged at $13 a ton.

To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

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


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