Asia Naphtha Crack Gains; Hin Leong Sells Gasoil: Oil Products

Asia’s naphtha crack spread widened for a fourth day, signaling increased profit for refiners. Hin Leong Trading Pte sold gasoil at a discount in Singapore, the region’s largest oil-trading center.

Light Distillates

The premium of Japan naphtha to London-traded Brent crude futures rose $4.23 to $121.53 a metric ton at 5:23 p.m. Singapore time, according to data compiled by Bloomberg. This is the longest rising streak for the crack spread, a measure of the profit from making the petrochemical and gasoline feedstock, since Sept. 26.

Vitol Group sold 25,000 tons of open-specification naphtha for second-half February delivery to Cargill Inc. at $962 a ton, according to a Bloomberg News survey of traders who monitored the Platts window.

Arcadia Petroleum Ltd. sold two 50,000-barrel cargoes of 92-RON gasoline in Singapore, the survey showed. Phillips 66 bought one shipment loading Jan. 15 to Jan. 19 at $117.40 a barrel. PetroChina Co. purchased for Jan. 11 to Jan. 15 at $117.80.

PetroChina, China’s biggest oil company, sold 50,000 barrels of 95-RON grade motor fuel, loading Jan. 13 to Jan. 17, to Arcadia at $120.40 a barrel, the survey showed.

Middle Distillates

Hin Leong sold 150,000 barrels of gasoil, or diesel, with 500 parts-per-million of sulfur to Vitol Group for Jan. 21 to Jan. 25 loading, according to the Bloomberg survey. The cargo changed hands at a discount of 20 cents a barrel to benchmark quotes.

Gasoil’s premium to Asian marker Dubai crude dropped 52 cents to $19.74 a barrel at 2:08 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a gauge of processing profit, is the narrowest in a week.

Jet fuel climbed 8 cents to a premium of 5 cents a barrel to gasoil, PVM said. A positive regrade indicates it is more profitable to make aviation fuel over diesel.

Fuel Oil

Fuel oil’s discount to Dubai crude widened 38 cents to $8.26 a barrel at 2:08 p.m. Singapore time, according to PVM. This crack spread widened for the sixth time in seven days, indicating higher losses for refiners producing residual fuels.

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

Tenders

Korea East-West Power Co. bought two 50,000-ton cargoes of fuel oil from Mercuria Energy Trading SA for January delivery to Ulsan, said an official who asked not to be identified because of company policy.

Korea Western Power Co. sought to buy two 30,000-ton cargoes of fuel oil for second-half January delivery, according to a statement on the utility’s website dated Dec. 24.

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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