Asia Naphtha Crack Rises; PetroChina Sells Diesel: Oil Products

Asia’s naphtha crack spread widened, extending last week’s gain. PetroChina Co. sold ultra- low-sulfur diesel in Singapore, the region’s biggest oil-trading center.

Light Distillates

China International United Petroleum & Chemical Co., or Unipec, bought two 50,000-barrel cargoes of 92-RON gasoline, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. Mercuria Energy Ltd. sold one shipment for Oct. 6 to Oct. 10 loading at $123.50 a barrel and Gunvor sold the other for Sept. 25 to Sept. 29 at $124.10.

Total SA sold a similar-sized cargo of 92-RON gasoline loading Sept. 25 to Sept. 29 to PetroChina at $124.60 a barrel, the survey showed. Royal Dutch Shell Plc bought the same quantity of 95-RON grade for Oct. 2 to Oct. 6 from Trafigura Beheer BV at $127.60.

The premium of Japan naphtha to London-traded Brent crude futures rose $1.70, or 1.5 percent, to $115.19 a metric ton at 5:10 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 4.8 percent last week.

Middle Distillates

PetroChina sold 150,000 barrels of gasoil, or diesel, with 10 parts-per-million of sulfur to BP Plc for Sept. 25 to Sept. 29, the earliest loading period, according to the Bloomberg survey. The cargo of ultra-low-sulfur diesel changed hands at $4 a barrel over prices for Sept. 25 to Oct. 1.

Gasoil’s premium to Asian marker Dubai crude dropped 24 cents to $18.67 a barrel at 1:53 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a gauge of processing profit, narrowed for the sixth time in seven days.

Jet fuel’s premium to gasoil climbed 5 cents to $1.80 a barrel, PVM said. That’s the highest regrade since Nov. 10, indicating it’s more profitable to make aviation fuel over diesel.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 10 cents to $3.29 a barrel at 1:53 p.m. Singapore time, according to PVM. The gap widened for a second day, signaling increased losses for refiners turning crude into residual fuels.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a second day at $13.75 a ton, PVM data showed. This means bunker, or marine fuel, moved in tandem with supplies used in power stations.

Refinery News

Idemitsu Kosan Co. shut the 623,000 ton-a-year ethylene plant at its Tokuyama refinery for maintenance on Sept. 4, said a company official who asked not to be identified because of internal policy.

Tenders

Cargill Inc., Marubeni Corp. and Unipec bought a total of 145,000 tons of naphtha from three Indian refiners for loading in September and October, according to traders who asked not to be named because the information is confidential.

To contact the reporters on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net; 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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