Asia Naphtha Crack Gains; Trafigura Buys Gasoil: Oil Products

Spencer Ogden our consultant managing the role
Date posted01/Nov/2011
Spencer Ogden our consultant managing the role

Asia’s naphtha crack spread rose after dropping the most in three years last month. Trafigura Beheer BV bought two gasoil cargoes in Singapore, the region’s biggest oil-trading center.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures rose to $64 a metric ton at 4 p.m. Singapore time from $52.71 at the end of Asian trading yesterday, according to data compiled by Bloomberg. This crack spread, a measure of refining profit, narrowed 59 percent last month, the biggest decline since October 2008.

Vitol Group bought 50,000 barrels of 92-RON gasoline from BP Plc in Singapore at $114.10 a barrel, according to a Bloomberg survey of traders monitoring transactions on the Platts window.

Middle Distillates

Trafigura purchased two 150,000-barrel cargoes of gasoil, or diesel, with 0.5 percent sulfur in Singapore at 80 cents a barrel above benchmark quotes, according to the Bloomberg survey. PetroChina Co. sold to the Amsterdam-based independent trader for loading from Nov. 16 to Nov. 20 and Royal Dutch Shell Plc traded a shipment for Nov. 25 to Dec. 1 loading.

Gasoil’s premium to Asian marker Dubai crude fell 21 cents to $20.13 a barrel at 2:16 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread narrowed for the first time in 10 days.

Jet fuel’s premium to gasoil rose 65 cents to $2.45 a barrel, PVM data showed. This regrade increased the most since Oct. 3 in percentage terms, indicating it is more profitable to produce aviation fuel over diesel.

Fuel Oil

Fuel oil’s discount to Dubai crude widened 29 cents to $3.52 a barrel at 2:16 p.m. Singapore time, based on PVM data. The gap widened the most since Oct. 20, signaling refiners’losses from turning oil into residual products are growing.

The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged after climbing to $8.25 a ton, PVM said. This viscosity spread was the widest since Oct. 12, meaning bunker, or marine fuel, has advanced less than higher-quality fuel oil.

To contact the reporters on this story: Yee Kai Pin in Singapore at; Ann Koh in Singapore at

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