Asia Gasoil Discounts Widen; Shell Buys Gasoline: Oil Products

Asia gasoil discounts widened after Glencore International AG bought three cargoes in Singapore, the region’s largest oil-trading center. Royal Dutch Shell Plc bought 95-RON gasoline at a lower price compared with yesterday.

Middle Distillates

Glencore bought three 150,000-barrel cargoes of 0.5 percent sulfur gasoil, or diesel, according to a Bloomberg News survey of traders monitoring transactions on the Platts window. The company received discounts of 30 cents a barrel to benchmark quotes from Chevron Corp. and 50 cents from Vitol Group. That’s a deeper discount than 20 cents yesterday. Glencore also paid BP Plc 40 cents less than quotes for July 20 to July 26.

Separately, China International United Petroleum & Chemical Corp., or Unipec, bought 250,000 barrels of gasoil from Brightoil Petroleum Holdings Ltd. at 40 cents a barrel below benchmark quotes, the survey showed.

Gasoil’s premium to Asian benchmark Dubai crude gained 16 cents to $18.59 a barrel at 2:15 p.m. Singapore time, according to PVM Oil Associates, a broker. This crack spread, a measure of refining profit, widened for a fifth day, the longest winning streak in seven months.

Jet fuel’s premium to gasoil rose 10 cents to $1 a barrel, PVM said. A rising regrade shows it’s profitable to produce aviation fuel.

Shell sold two jet-fuel cargoes in Singapore, according to the survey. The company sold to Hin Leong Trading Pte at 50 cents a barrel below benchmark quotes and to BP at 30 cents below July quotes.

Fuel Oil

Fuel oil’s discount to Dubai crude narrowed 16 cents to $6.70 a barrel at 2:15 p.m. Singapore time, according to PVM. The difference yesterday was the widest since June 16, signaling growing losses for refiners turning oil into residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged after decreasing yesterday to $9.50. A narrowing viscosity spread means bunker, or marine fuel, has declined less than higher-quality fuel oil.

Light Distillates

Shell bought 50,000 barrels of 95-RON gasoline loading from Singapore at $124.90 a barrel from Vitol, the survey showed. Prices are lower than yesterday, when Shell bought a similar cargo at $126.30 a barrel.

Vitol bought four cargoes of 92-RON ranging in price from $120.30 to $120.40 a barrel. Morgan Stanley, Shell, Total SA and PetroChina Co. each sold 50,000 barrels to Vitol.

Naphtha for delivery to Japan in the first half of September traded at $926 to $927 a ton. Shell bought 25,000 tons from Mabanaft GmbH & Co. and another 25,000 tons from Itochu Corp. BP sold 25,000 tons to Cargill Inc.

Naphtha’s premium to London-traded Brent crude futures was at $80.21 a ton at 5:57 p.m. Singapore time from $79.42 at the end of Asian trading yesterday, according to data compiled by Bloomberg.

To contact the reporters on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.