Asia Fuel-Oil Premium Drops; BP Buys Gasoil Cargo: Oil Products
Asia fuel oil’s premium to crude slid, signaling reduced profit for refiners turning oil into residual products. BP Plc paid more than Singapore prices for a shipment of gasoil.
Fuel oil’s premium to benchmark Dubai crude declined 26 cents to $1.03 a barrel at 2:02 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The difference shrank for the first time in nine days.
The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged after decreasing to $10.75 a metric ton, PVM said. This means marine fuel moved in tandem with fuel oil used in power stations.
BP bought 150,000 barrels of gasoil, or diesel, with 0.5 percent sulfur from China International United Petroleum & Chemical Co. for loading July 6 to July 10, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. Unipec, as the seller is known, received 10 cents a barrel over July prices.
Gasoil’s premium to Dubai crude fell 70 cents to $15.21 a barrel at 2:02 p.m. Singapore time, according to PVM. This crack spread, a measure of refining profit, narrowed the most since May 10.
Japan naphtha’s premium to London-traded Brent crude futures climbed $9.92, or 34 percent, to $39.53 a ton, according to Bloomberg calculations based on PVM data. The gap, also known as the crack spread, is the widest since June 11.
BP sold 25,000 tons of open-specification naphtha for first-half September delivery to Lukoil OAO at $762 a ton, according to the Bloomberg survey.
Formosa Petrochemical Corp. started its No. 3 naphtha cracker in Mailiao on June 15 after unplanned repairs, said a company official who asked not to be identified because he isn’t authorized to speak to the media. The 1.2 million ton-a-year unit was shut at the end of May.
JX Nippon Oil & Energy Corp. extinguished a fire near a pipeline at its Muroran refinery in Hokkaido prefecture, according to a company statement. There were no injuries or oil spills to the ocean.
China Petroleum & Chemical Corp., or Sinopec, started all 22 units at its Zhanjiang Dongxing refinery after 50 days’ maintenance, China Petrochemical Corp., its parent company, said in an online newsletter. The 5 million ton-a-year plant was shut April 19.
PetroChina Co. completed a crude distillation unit at its Hohhot refinery, the first of 11 upgraded units to be handed over by a contractor, China National Petroleum Corp., its parent company, said in an online newsletter. The facility has a capacity of 5 million tons a year.
Nansei Sekiyu K.K. halted berthing operations at its Nishihara refinery on Okinawa island yesterday as typhoon Guchol approached, said an official who asked not to be identified because of company policy.
Korea East-West Power Co. bought a total of 100,000 tons of high-sulfur fuel oil from Mercuria Energy Ltd. and Mitsui & Co. for July delivery to Ulsan, according to a company e-mail.
Oil & Natural Gas Corp. offered to sell 35,000 tons of naphtha for July loading from Mumbai, according to a document e- mailed to potential buyers.
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