Asia Naphtha Crack Widens; Mitsui Sells Gasoil: Oil Products

Refiners’ profits from naphtha rose to the highest level in almost a month. Mitsui & Co. and Brightoil Petroleum Holdings Ltd. sold gasoil in Singapore.

Light Distillates

Japan naphtha’s premium to London-traded Brent crude futures widened $18.83, or 70 percent, to $45.90 a metric ton at 6:19 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread is the widest since May 31.

Mabanaft GmbH sold 25,000 tons of open-specification naphtha for delivery in the second half of August to Glencore International AG at $745 a ton, according to a Bloomberg News survey of traders who monitored the Platts window.

Gunvor Group Ltd. sold 50,000 barrels of 95-RON gasoline, loading July 18 to July 22 to Gracewood International Ltd. at $100.10 a barrel.

Middle Distillates

Mitsui sold 150,000 barrels of gasoil with 10 parts per million of sulfur to BP Plc at a premium of $3.80 a barrel to benchmark prices published between July 12 and July 18, the survey of traders showed. The cargo was for loading July 13 to July 17.

Brightoil sold a similar-sized cargo of gasoil with 0.5 percent sulfur to Total SA at a premium of 10 cents to benchmark prices between July 18 and July 24.

Singapore gasoil’s premium to Dubai crude rose 59 cents, or 3.9 percent, to $15.74 a barrel, Bloomberg data showed. The spread is the widest in a week.

Fuel Oil

China International United Petroleum & Chemical Co., or Unipec, sold two 20,000-ton, 380-centistoke fuel oil cargoes to Hin Leong Trading Pte and PetroChina Co., the Bloomberg survey showed. The first cargo, for July 18 to July 22 loading, was sold at a premium of $3 a ton over the benchmark quotes, and the second, for July 23 to July 27 loading, was at a premium of $4.25 a ton. Lukoil OAO sold a 40,000-ton similar grade cargo to Royal Dutch Shell Plc at a premium of $4.75 a ton over the benchmark price, and the cargo is for July 14 to July 18 loading.

Fuel oil in Singapore traded a premium of 5 cents a barrel to benchmark Dubai crude. This crack spread was at a discount of 66 cents yesterday, according to Bloomberg. This shows refiners are making a profit from processing crude into residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, rose 50 cents to $11.25 a ton, according to Bloomberg data. This shows marine fuel gained less compared with fuel oil used in power stations.

Tenders

Oil & Natural Gas Corp., India’s largest state-owned oil explorer, offered to sell a naphtha cargo for loading in July from Hazira, according to a document sent to potential buyers.

Refinery News

Formosa Petrochemical Corp. said it will resume production tomorrow at its No. 2 naphtha cracker at Mailiao, Taiwan. The company, which shut the unit on June 20 because of a power failure, plans to feed naphtha into the plant on June 29 and expects chemical products to come out by tomorrow evening, President Tsao Mihn said by telephone from Taipei. The cracker resumed mechanical operations on June 26, he said.

Taiwan’s only publicly traded refiner plans to start the halted No. 3 naphtha cracker in early July, Tsao said.

To contact the reporters on this story: Ann Koh in Singapore at akoh15@bloomberg.net; Winnie Zhu in Singapore at wzhu4@bloomberg.net

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

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