Asia’s naphtha crack fell. Royal Dutch Shell Plc paid a reduced premium for low-sulfur gasoil inSingapore, the region’s largest oil-trading center.
Naphtha’s premium to London-traded Brent crude futures, a measure of the profit from the petrochemicals and gasoline feedstock, fell to $82.40 a metric ton at 6:25 p.m. Singapore time from $85 at the end of Asian trading yesterday.
Shell bought 150,000 barrels of gasoil, or diesel, with 10 parts-per-million of sulfur from Gunvor Group Ltd. in Singapore, according to a Bloomberg survey of traders monitoring transactions on the Platts window. The price was $3.30 a barrel above benchmark quotes, the smallest premium reported for ultra-low-sulfur diesel since Oct. 14.
Shell sold 250,000 barrels of gasoil with 0.5 percent sulfur to Total SA at 50 cents a barrel over quotes, the survey showed. The cargo is for Dec. 23 to Dec. 27, the earliest loading period.
Gasoil’s premium to Asian marker Dubai crude dropped 12 cents to $18.83 a barrel at 3:02 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. Yesterday, thiscrack spread was the widest in two weeks.
Jet fuel’s premium to gasoil fell 15 cents to 95 cents a barrel, PVM data showed. This regrade is the narrowest so far this month, indicating it is less profitable to produce aviation fuel over diesel.
PetroChina Co. bought 20,000 tons of 180-centistoke fuel oil from China International United Petroleum & Chemical Corp. in Singapore, paying $13 a ton over benchmark quotes, according to the Bloomberg survey. The cargo will load between Dec. 23 and Dec. 27. PetroChina sold a similar cargo for Jan. 3 to Jan. 7 loading to Hin Leong Trading Pte at a $5 premium to December prices, the survey showed.
Fuel oil’s discount to Dubai crude narrowed 18 cents to $5.82 a barrel at 3:02 p.m. Singapore time, based on PVM data. Yesterday, the gap was the biggest since Sept. 15, signaling losses for refiners turning oil into residual products.
The premium of 180-centistoke fuel oil to 380-centistokegrade, or the viscosity spread, was unchanged after rising to $14.25 a ton, PVM said. This means bunker, or marine fuel, moved in tandem with higher-quality fuel oil.