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