Asia’s naphtha crack spread fell to the lowest in a week, signaling reduced profit for refiners. PetroChina Co. sold gasoil cargoes in Singapore, the region’s largest oil-trading center.
Naphtha’s premium to London-traded Brent-crude futures dropped to $118.14 a metric ton at 3 p.m. Singapore time from $131 yesterday, according to data compiled by Bloomberg. This crack spread, a measure of refining profit, is the narrowest since Jan. 25.
Glencore International Plc sold 25,000 tons of open-specification naphtha for first-half April delivery to Royal Dutch Shell Plc at $980 a ton, based on a Bloomberg News survey of traders who monitored transactions on the Platts window.
Total SA sold 50,000 barrels of 95-RON gasoline to BP Plc at $125.80 a barrel, the survey showed. Europe’s biggest refiner also sold 50,000 barrels of 92-RON grade to Vitol Group at $122.90 a barrel. Vitol bought another cargo of the same variety from Mercuria Energy Ltd. at $123.50 a barrel.
PetroChina Co. sold 150,000 barrels of gasoil, or diesel, with 10 parts-per-million of sulfur to Hin Leong Trading Pte, according to the Bloomberg survey. The cargo, for loading from Feb. 19 to Feb. 23, changed hands at $2.30 a barrel over benchmark quotes. That’s the smallest premium reported in Singapore so far this year for ultra-low-sulfur diesel.
PetroChina also sold 150,000 barrels of 0.5 percent sulfur gasoil to BP at 40 cents a barrel over quotes, the survey showed. Trafigura Beheer BV bought a similar cargo from Shell at a 20-cent premium. Both cargoes are for Feb. 17 to Feb. 21, the earliest loading period.
Gasoil’s premium to Asian marker Dubai crude rose 15 cents to $18.65 a barrel at 2:41 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spreadwidened for the first time in three days.
Jet fuel fell 5 cents to 15 cents a barrel below gasoil, PVM data showed. This regrade has been negative since Jan. 16, indicating it is unprofitable to produce aviation fuel over diesel.
Hin Leong purchased two 20,000-ton cargoes of 380-centistoke fuel oil, according to the Bloomberg survey. The Singapore trader paid $14.50 a ton over benchmark quotes to Lukoil OAO and a $13.50 premium to Kuo Oil Ltd. for the shipments, loading Feb. 17 to Feb. 21.
Fuel oil rebounded 59 cents to $1.27 a barrel below Dubai crude at 2:41 p.m. Singapore time, based on PVM data. Yesterday’s discount was the biggest since Jan. 13, signaling losses for refiners turning oil into residual products.
The premium of 180-centistoke fuel oil to 380-centistoke grade climbed 75 cents to $10.50 a ton, PVM said. This viscosity spread narrowed $3.50 in the previous four days, meaning bunker, or marine fuel, declined less than higher-quality fuel oil.