Naphtha, Gasoil Refining Profits Increase in Asia: Oil Products

Asia naphtha’s premium to Brent crude widened by the most in almost three weeks. Gasoil’s crack spread rose, signaling more profit for refiners making the distillate fuel. Royal Dutch Shell Plc bought gasoline in Singapore.

Light Distillates

Naphtha’s premium to London-traded Brent crude futures rose to $124.20 a metric ton at 3 p.m. Singapore time from $97.58 yesterday, according to data compiled by Bloomberg. This crack spread, a measure of profit from making the petrochemical feedstock, gained 27 percent today, the most since Jan. 18.

Shell, the biggest reported buyer of 95-RON gasoline in Singapore last month, purchased 50,000 barrels from PetroChina Co. at $127.50 a barrel, according to a Bloomberg News survey of traders who monitored transactions on the Platts window.

Middle Distillates

The premium of gasoil, or diesel, to Asian marker Dubai crude rose 90 cents to $19.35 a barrel at 2:13 p.m. Singapore time, based on data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of refining profit, widened the most since Dec. 16.

Jet fuel fell 20 cents to 50 cents a barrel below gasoil, the biggest discount so far this month PVM data showed. This regrade has been negative since Jan. 16, indicating it is unprofitable to produce aviation fuel over diesel.

Fuel Oil

Fuel oil increased 22 cents to $2.62 a barrel below Dubai crude at 2:13 p.m. Singapore time, according to PVM. The discount narrowed for a second day, signaling reduced losses for refiners turning oil into residual products.

The premium of 180-centistoke fuel oil to 380-centistoke grade declined 75 cents to $8.50 a ton, PVM said. This viscosity spread is the narrowest since Nov. 3, meaning bunker, or marine fuel, advanced more than higher-quality fuel oil.


Litasco SA bought 40,000 tons of diesel with a maximum sulfur content of 1 percent for February loading from Hindustan Petroleum Corp. at about 50 cents a barrel below Middle East benchmark prices, two traders said.

Refinery News

JX Nippon Oil & Energy Corp. said five people are missing after a cave-in at an undersea tunnel at its Mizushima refinery in western Japan, The accident won’t affect pipelines and output from the Mizushima A and B plants, which have a combined capacity of 365,000 barrels a day.

Caltex Australia Ltd. will conduct maintenance at its Kurnell refinery in Australia for one month in the second half of the year, the company said in an e-mailed statement today. It is also planning work on a crude unit at its Lytton refinery for about a month in the first half of the year. The Kurnell plant has a nameplate capacity of 135,000 barrels a day, and Lytton can process 109,000 barrels.

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