Asia Naphtha Crack Caps Monthly Drop; Gasoil Gains: Oil Products

Asia refining profits from naphtha fell for the first month in four. The gasoil and fuel oil cracks rose. Royal Dutch Shell Plc bought a naphtha cargo and sold gasoil in Singapore.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures fell to $118.86 a metric ton at 5:59 p.m. Singapore time from $135.41 yesterday, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the gasoline and petrochemical feedstock, has narrowed 14 percent this month, the biggest decline since October.

Shell bought 25,000 tons of open-specification naphtha for delivery in the second-half of May from Mabanaft GmbH & Co. at $1,061 a ton, according to a survey of traders who monitored transactions on the Platts window.

Glencore International Plc, the biggest reported seller of naphtha this month during trading in Singapore, sold 25,000 tons to Noble Energy Inc. at $1,061 a ton. PetroChina Co. bought 50,000 barrels of 92-RON (MOGFC92S) gasoline from Gracewood International Ltd. at $134.60 a barrel and bought another 50,000 barrels from BP Plc at $135 a barrel. Both cargoes were for loading April 14 to 18.

Middle Distillates

Shell sold 150,000 barrels of gasoil with 0.5 percent sulfur for loading April 14 to April 18 to Hin Leong Trading Pte at a discount of 20 cents a barrel to benchmark prices for the grade, according to the Bloomberg survey.

JP Morgan Ventures, a unit of JPMorgan Chase & Co., sold 150,000 barrels of gasoil with 0.5 percent sulfur for loading April 18 to April 22 to Trafigura Beheer BV at a discount of 10 cents a barrel to benchmark quotes. PetroChina sold 150,000 barrels of gasoil with 10 parts-per-million of sulfur to BP Plc at a premium of $3 a barrel to prices of gasoil with 0.5 percent sulfur.

Gasoil traded at a premium of $15.50 a barrel to Dubai crude, down 53 cents from yesterday, according to PVM Oil Associates Ltd., a broker. This crack spread widened 3.3 percent this week and has gained 2.2 percent this month.

Jet fuel’s premium to gasoil rose to 25 cents today. The regrade was at 20 cents a week earlier, indicating it is more profitable to make aviation fuel relative to diesel.

Fuel Oil

Koch Industries Inc. sold 25,000 tons of 380-centistoke fuel oil for loading April 14 to April 18 to BP at a premium of $2 a ton to average prices next month, the Bloomberg survey of traders showed.

Fuel oil’s discount to Dubai fell to $6.67 a barrel from $5.70 yesterday, data from PVM showed. The discount has narrowed 4.5 percent this week and 8 percent in March, signaling reduced losses for refiners turning oil into residual products.

The premium of 180-centistoke (N6SHS180) fuel oil to 380-centistoke (N6SHS380) grade, or the viscosity spread, dropped 50 cents to $11.50 a ton, PVM data showed.

Refinery News

Reliance Industries Ltd. plans to shut a diesel hydrotreater at the older of its two plants for maintenance this month, according to a person with knowledge of the matter. The unit at the 660,000 barrel-a-day Jamnagar site in India’s Gujarat state will be shut until mid-April. The company may also close a crude-distillation unit and a vacuum-gasoil hydrotreater at the same refinery later.

Tenders

Qatar International Petroleum Marketing Co., known as Tasweeq, offered to sell 20,000 to 25,000 tons of gasoil for delivery in April to Egypt, according to a notice sent to potential buyers.

Total SA and China International United Petroleum & Chemical Co., or Unipec, bought a total of 70,000 tons of naphtha from Oil & Natural Gas Corp., said two traders. Unipec paid a premium of about $43 a ton to Middle East prices for 35,000 tons of the fuel loading in mid-April, while Total paid about $43.50 more than Middle East prices for another cargo loading later in the month.

LG Chem Ltd. bought 50,000 to 70,000 tons of naphtha for May delivery to the ports of Yeosu and Daesan in South Korea at a premium of $18.50 to $19 a metric ton to Japan benchmark prices, according to three traders.

Yeochun NCC Co. bought three naphtha cargoes, or about 75,000 tons, for delivery to Yeosu in South Korea in May at a premium of $19.50 a metric ton to Japan benchmark prices, according to four traders.

To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

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

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