Asia Gasoil, Fuel Oil Cracks Weaken for Third Day: Oil Products

Asia’s gasoil and fuel oil crack spreads weakened for a third day. Naphtha refining margins rose.

Middle Distillates

Gasoil’s premium to Dubai crude fell 17 cents, or 0.9 percent, to $19.16 a barrel at 11:40 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.

Gasoil swaps for October rose 16 cents, or 0.1 percent, to $126.35 a barrel, PVM data showed. Jet fuel’s premium to gasoil widened 5 cents to $1.45 a barrel. This spread, or the regrade, has increased 61 percent from a week earlier, signaling it’s more profitable to make aviation fuel over diesel.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 33 cents to $3.57 a barrel, PVM data showed. A bigger discount indicates wider refining losses from making the fuel.

Fuel oil swaps for October were unchanged at $658 a ton, PVM said. The premium of 180-centistoke fuel oil to 380- centistoke grade was unchanged at $12.25 a ton.

Light Distillates

Japan naphtha’s premium to London-traded Brent crude futures gained $6.13, or 5.9 percent, to $109.59 a ton, according to data compiled by Bloomberg. This spread increased for a fifth day.

Naphtha swaps for October increased $5.75, or 0.6 percent, to $938.25 a ton, PVM data showed.

In Singapore, gasoline’s premium to naphtha fell 62 cents to $17.88 a barrel yesterday. This reforming margin has increased about 40 percent so far this month, signaling it’s more profitable for refiners to make car fuel over petrochemical feedstock.

To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

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

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