Glencore Sells More Naphtha; Hin Leong Buys Gasoil: Oil Products

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.

Light Distillates

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.

Middle Distillates

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

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.

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