Asia Naphtha Crack Widens; Shell Sells Gasoline: Oil Products

Spencer Ogden our consultant managing the role
Date posted17/Nov/2011
Spencer Ogden our consultant managing the role

The Asian naphtha crack widened. Royal Dutch Shell Plc sold 97-RON gasoline for the second day in Singapore. PetroChina Co. bought fuel oil in the region’s biggest oil-trading hub.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures, a measure of the profit from the petrochemicals and gasoline feedstock, jumped to $63 a metric ton at 6 p.m. Singapore time from $43.78 at the end of Asian trading yesterday, according to data compiled by Bloomberg. The spread has widened for a second day.

Shell sold 25,000 tons of naphtha for first-half February delivery to BP Plc at $895 a ton, according to a Bloomberg survey of traders who monitored transactions on the Platts window today. Europe’s biggest oil company sold 50,000 barrels of 97-RON gasoline to Glencore International Plc at $115.30 a barrel.

Middle Distillates

Trafigura Beheer BV bought gasoil, or diesel, with 0.5 percent sulfur for a ninth day in Singapore, bringing its purchases this month to at least 20 cargoes totaling 3.2 million barrels, according to the Bloomberg survey. The Amsterdam-based trader paid $2 a barrel over benchmark quotes to Shell to load 150,000 barrels between Dec. 3 and Dec. 7.

Shell bought a similar-sized gasoil cargo with 10 parts-per-million of sulfur from Hin Leong Trading Pte at plus $4.10 a barrel for Dec. 4 to Dec. 8, the survey showed. That’s the highest premium for ultra-low-sulfur diesel since Nov. 8, according to Bloomberg tracking.

Gasoil’s premium to Asian marker Dubai crude fell $1.38 to $19.57 a barrel at 2 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread is the narrowest in a week.

Jet fuel’s premium to gasoil rose 30 cents to $1.50 a barrel, the highest so far this week, PVM data showed. A widening regrade indicates it is more profitable to produceaviation fuel over diesel.

BP bought 100,000 barrels of jet fuel from Shell for Dec. 3 to Dec. 7 loading at 10 cents a barrel below quotes, the survey showed.

Fuel Oil

PetroChina purchased two 40,000-ton cargoes of 180-centistoke fuel oil for loading from Dec. 7 to Dec. 11, according to the Bloomberg survey. China’s second-largest oil trader paid $15 a ton over benchmark quotes to Vitol Group and a $14.50 premium to BP.

Fuel oil’s discount to Dubai crude widened 80 cents to $3.93 a barrel at 2 p.m. Singapore time, based on PVM data. That’s the largest gap in four weeks, signaling refiners’ losses from turning oil into residual products are growing.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a third day at $13.50 a ton, PVM said. This means bunker, or marine fuel, moved in tandem with higher-quality fuel oil.

Why Spencer Ogden

We’ve won awards for what we do

Proactive, professional and passionate about recruitment is how we do it. Our Graduate Academy is an intensive training ground for the world’s top graduates. Thanks to the know-how of leading managers and directors, we turn them into the best recruitment professionals in the industry.

Join our team
Spencer Ogden
Spencer Ogden
Spencer Ogden