Asia Naphtha Crack Gains; PetroChina Buys Jet Fuel: Oil Products

Asia’s naphtha crack spread extended gains, signaling increased profit for refiners. PetroChina Co. bought a jet fuel cargo for a third day in Singapore, the region’s largest oil-trading center.

Light Distillates

The premium of Japan naphtha to London-traded Brent crude futures rose $2.81 to $117.83 a metric ton at 1:55 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the petrochemical and gasoline feedstock, widened for a third day, the longest stretch of increases since October.

Gunvor Group Ltd. sold 50,000 barrels of 97-RON gasoline to Vitol Group for a second day, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The cargo, for loading Jan. 19 to Jan. 23, traded at $121.40 a barrel.

Middle Distillates

Hin Leong Trading Pte bought 150,000 barrels of gasoil, or diesel, with 0.5 percent sulfur from Royal Dutch Shell Plc (RDSA) for Jan. 8 to Jan. 12, the earliest loading period, according to the Bloomberg survey. The transaction was at a discount of $2.10 a barrel to January prices.

Singapore-based Hin Leong sold 110,000 barrels of jet fuel to PetroChina for Jan. 10 to Jan. 14 loading, the survey showed. The shipment changed hands at a premium of 20 cents a barrel to January prices.

Gasoil’s premium to Asian marker Dubai crude dropped 28 cents to $20.26 a barrel at 1:55 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The difference, also known as the crack spread, shrank for the first time in three days.

Jet fuel climbed 7 cents to a discount of 3 cents a barrel to gasoil, PVM said. A negative regrade indicates it is unprofitable to make aviation fuel over diesel.

Fuel Oil

Fuel oil’s discount to Dubai crude narrowed 44 cents to $7.88 a barrel at 1:55 p.m. Singapore time, according to PVM. This crack spread narrowed for the first time in six days, indicating reduced losses for refiners making residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a fifth day at $10.25 a ton, PVM data showed. This means bunker, or marine fuel, moved in tandem with supplies used in power stations.

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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