Asia Gasoil Profit Shrinks; Fuel-Oil Swaps Rebound: Oil Products

Asia’s gasoil crack spread shrank for the first time in five days, signaling reduced profit for refiners making the distillate fuel. Fuel-oil swaps rose for the ninth time in 10 days.

Middle Distillates

The premium of gasoil, or diesel, to Asian marker Dubai crude fell 75 cents from Aug. 17 to $19.05 a barrel at 12 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread measures processing profit.

Gasoil swaps for September dropped 75 cents, or 0.6 percent, to $129.55 a barrel, PVM said. Prices were down for a second day. Jet fuel’s premium to gasoil rose 15 cents to 80 cents. A wider regrade indicates it’s more profitable to produce aviation fuel than diesel.

Fuel Oil

High-sulfur fuel oil climbed 35 cents to $3.10 a barrel below Dubai crude, according to PVM. The discount narrowed for the fourth time in five days, showing reduced losses for refiners turning crude into residual products.

Fuel-oil swaps for September rebounded $2.25, or 0.3 percent, to $682 a metric ton, PVM data showed. The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged after decreasing last week to $12.50. This means bunker, or marine fuel, moved in tandem with higher-quality supplies used in power stations.

Light Distillates

Naphtha swaps for September increased $1.50, or 0.2 percent, at $952.50 a ton, according to PVM. The petrochemical and gasoline feedstock was up for the third time in four days.

Naphtha’s premium to London-traded Brent crude futures was little changed after rising to $94.38 a ton, the highest since early May, according to data compiled by Bloomberg. Gasoline’s premium to naphtha on Aug. 17 lost 81 cents to $22.47 a barrel, data compiled by Bloomberg showed. A narrowing reforming margin signals it is less profitable to make motor fuel.

To contact the reporter on this story: Yee Kai Pin 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.