Glencore International AG sold naphtha for a third day in Singapore, Asia’s biggest oil-trading center. Hin Leong Trading Pte paid a higher premium for two gasoil cargoes.
Glencore, the world’s largest commodities trader, sold a 25,000 metric-ton, open-specification naphtha contract for the first half of December, according to a Bloomberg survey of traders monitoring transactions on the Platts window. The company received $907 a ton from BP Plc.
Naphtha’s premium to London-traded Brent crude futures increased 83 cents from yesterday to $67.42 a ton at 6 p.m. Singapore time, based on data compiled by Bloomberg. This crack spread, a measure of refining profit, widened for the second time in three days.
Hin Leong bought gasoil, or diesel, with 0.5 percent sulfur for a second day in Singapore, according to the Bloomberg survey. The closely held trader paid 40 cents a barrel over benchmark quotes to ConocoPhillips and BP for 170,000 barrels each. That’s a higher premium than 10 cents in yesterday’s transactions.
Gasoil’s premium to Asian marker Dubai crude fell 91 cents to $15.22 a barrel at 2:31 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread is the narrowest since Sept. 15.
Jet fuel’s premium to gasoil rose 5 cents to $3.05 a barrel, PVM said. This regrade is the highest since Feb. 23, indicating it is profitable to produce aviation fuel over diesel.
Fuel oil’s discount to Dubai crude widened 72 cents to $5.13 a barrel at 2:31 p.m. Singapore time, according to PVM. That’s the biggest gap this week, signaling refiners’ losses from turning oil into residual products are growing.
The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged after dropping to $7.50 a ton, PVM data showed. A narrower viscosity spread means bunker, or marine fuel, has gained more than higher-quality fuel oil.