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Asia Gasoil Crack Drops; Naphtha Falls a Fifth Day: Oil Products

15 Nov 2011

Asia refining margins from naphtha, gasoil and fuel oil fell shrank as oil outpaced fuel prices. Naphtha swaps fell for a fifth day.

Light Distillates

December swaps for naphtha, a petrochemicals and gasoline feedstock, fell 0.9 percent to $872.50 a metric ton at 10:39 a.m. Singapore time, according to data from PVM Oil Associates Ltd, a London-based broker. Prices dropped for a fifth day, the longest declining streak since Oct. 27.

The swaps value was at a premium of $25.45 a ton above Brent oil from $27.07 a ton at the end of Asian trading yesterday, according to data compiled by Bloomberg.

Naphtha swaps have gained 5.5 percent since Jan. 31, trailing Brent futures which have risen 11 percent over the same period on London’s ICE Futures Europe exchange.

Middle Distillates

Gasoil’s premium to Dubai crude fell 43 cents, or 2.1 percent, to $19.67 a barrel, the lowest since Nov. 10, PVM data showed.

December swaps for gasoil decreased 85 cents, or 0.7 percent, to $128.95 a barrel, the first decline in three days. Prices have gained 25 percent so far this year.

Jet fuel’s premium to gasoil, also known as the regrade, narrowed 10 cents to $1.30 a barrel.

Fuel Oil

High-sulfur fuel-oil swaps slipped $6, or 0.9 percent, to $689.50 a ton, PVM data showed.

Fuel oil’s discount to Dubai crude, a measure of refining losses from the fuel, widened 50 cents, or 19 percent, to $3.20 a barrel.

The premium of 180-centistoke fuel oil to the 380-centistoke grade was at $13.50 a ton, unchanged from yesterday.