Asia Naphtha Crack Widens; Gunvor Sells Fuel Cargoes

(Corrects crude grade in first paragraph of Jan. 4 story)

Asia’s naphtha crack spread, or premium to Brent crude, widened. Gunvor Group Ltd. sold fuel-oil cargoes for a second day in Singapore, the region’s largest oil- trading center.

Light Distillates

Japan naphtha (NAPHJPNC) swaps were at a premium of $84.52 a metric ton to Brent crude futures at 2:56 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the petrochemical and gasoline feedstock, was at $72.96 at the end of Asian trading yesterday.

Honam Petrochemical Corp. bought two naphtha cargoes for delivery in the first half of February to South Korea at about $8 a ton above Japan prices yesterday, a company official said today. The petrochemical producer also purchased a second-half February cargo at a $4 premium.

Royal Dutch Shell Plc, the biggest buyer of 95-RON gasoline (MOGFC95S) in Singapore last month, purchased 50,000 barrels of the grade at $123.20 a barrel from Total SA, based on a Bloomberg News survey of traders who monitored transactions on the Platts window. Morgan Stanley sold 50,000 barrels of 92-RON gasoline to PetroChina Co. at $119.70 a barrel.

Fuel Oil

Gunvor sold two 20,000-ton cargoes of 380-centistoke (N6SHS380) fuel oil to Brightoil Petroleum Holdings Ltd., according to the Bloomberg survey. The Cyprus-based trader received $25 a ton over average February quotes to load from Jan. 29 to Feb. 2.

Fuel oil’s discount (PVMPFD1M) to Dubai crude narrowed 66 cents to $1.96 a barrel at 2:56 p.m. Singapore time, based on date from PVM Oil Associates Ltd., a broker. The gap shrank for the fourth time in five days, signaling reduced losses for refiners turning oil into residual products.

The premium of 180-centistoke (N6SHS180) fuel oil to 380-centistoke grade climbed 25 cents to $12.75 a ton, PVM said. This viscosity spread (PVMP13M1) is the widest since Dec. 16, meaning bunker, or marine fuel, advanced less than higher-quality fuel oil.

Middle Distillates

The premium of gasoil (GASLSICF), or diesel, to Asian marker Dubai crude rose 64 cents to $18.65 a barrel at 2:56 p.m. Singapore time, according to PVM. This crack spread (PVMPGDM1) is the widest since Dec. 9.

Jet fuel (JETKSIFC)’s premium to gasoil slid 5 cents to 55 cents a barrel, PVM said. A narrower regrade (PVMPJG1M) indicates it is less profitable to produce aviation fuel over diesel.

To contact the reporters on this story: Yee Kai Pin in Singapore at; Ann Koh in Singapore at

To contact the editor responsible for this story: Alexander Kwiatkowski at

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.