Fuel-Oil Discount Shrinks; Gracewood Buys Gasoline: Oil Products

Asia fuel oil’s discount to crude shrank to the smallest amount in 10 weeks, signaling lower losses on turning oil into residual products. Gracewood International Ltd. bought gasoline cargoes in Singapore.

Fuel Oil

Fuel oil rose 19 cents to $4.03 a barrel below Asian benchmark Dubai crude at 2:24 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. That’s the smallest discount since Feb. 13.

Hin Leong Trading Pte bought two 20,000 metric-ton cargoes of 380-centistoke fuel oil from Gunvor Group Ltd. for May 9 to May 13 loading, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The transaction was at $2.50 a ton more than benchmark quotes.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a second day at $9.75 a ton, PVM said. This means bunker, or marine fuel, moved in tandem with higher-quality fuel oil.

Light Distillates

Gracewood bought 50,000 barrels of 92-RON gasoline for May 15 to May 19 loading from Vitol Group at $129.20 a barrel, according to the Bloomberg survey. The Hong Kong-based trader purchased a similar cargo for May 9 to May 13 from Trafigura Beheer BV at $129.70 a barrel and 50,000 barrels of 97-RON grade from Total SA at $135.30.

Trafigura bought 50,000 barrels of 92-RON gasoline from BP Plc at $129.80 a barrel, the survey showed. Morgan Stanley purchased the same quantity from PetroChina Co. at $129.90.

The premium of Japan naphtha to London-traded Brent crude futures rose 11 percent to $117.80 a ton at 5:08 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the gasoline and petrochemical feedstock, widened the most in two weeks.

Middle Distillates

Trafigura bought 250,000 barrels of gasoil, or diesel, with 0.5 percent sulfur from Glencore International Plc at 20 cents a barrel below benchmark quotes, according to the Bloomberg survey. The cargo is for May 9 to May 13 loading.

Total sold 150,000 barrels with 10 parts-per-million of sulfur to ConocoPhillips at $3 a barrel above quotes, the survey showed. Reliance Industries Ltd. sold a similar cargo to PetroChina at the same premium and another shipment to BP at $3 a barrel over May prices.

Gasoil’s premium to Dubai crude increased 13 cents to $17.08 a barrel at 2:24 p.m. Singapore time, PVM data showed. This crack spread, a gauge of processing profit, widened for the sixth time in seven days.

Jet fuel’s premium to gasoil was unchanged for a second day at 45 cents a barrel, PVM said. This regrade gained 29 percent last week, indicating it was profitable to make aviation fuel.

Tenders

Essar Oil Ltd. offered to sell 60,000 tons of vacuum gasoil for May loading from Vadinar, said three traders who declined to be identified because the information is confidential.

Vitol bought 45,000 tons of fuel oil from Essar Oil for May loading from Vadinar, India, said four traders who asked not to be identified because the information is confidential. The cargo changed hands at close to $7 a ton more than Middle East prices.

Bharat Petroleum Corp. sought to buy a total of 35,000 tons of gasoil for May delivery from Paradip and Haldia in India, according to a tender document obtained by Bloomberg News.

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: Mike Anderson at manderson34@bloomberg.net

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