July 2 (Bloomberg) -- Asia’s gasoil crack spread widened, signaling rising profit for refiners making the distillate fuel. Gunvor Group Ltd. sold gasoline to Glencore International Plc in Singapore for a second day.
The premium of gasoil, or diesel, to Asian benchmark Dubai crude increased 57 cents to $17.45 a barrel at 5:25 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of processing profit, was the widest in seven days.
BP Plc sold 100,000 barrels of jet fuel to Royal Dutch Shell Plc for July 14 to July 18 loading, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The cargo changed hands at 10 cents a barrel above benchmark quotes.
Jet fuel’s premium to gasoil was unchanged for a second day at 75 cents a barrel, PVM said. This regrade tripled from the first quarter to the second, meaning it was more profitable to make aviation fuel over diesel.
Japan naphtha’s premium to London-traded Brent crude futures rose to $53.88 a metric ton at 5:08 p.m. Singapore time, from $18.17 on June 29, according to data compiled by Bloomberg. This crack spread declined 86 percent in the three months to June, the biggest quarterly slump in at least a year, when Bloomberg began tracking the data.
Gunvor sold 50,000 barrels of 92-RON gasoline to Glencore at $100.90 a barrel, according to the Bloomberg survey. The Cyprus-based trader will load the shipment from July 24 to July 28.
Trafigura Beheer BV sold a similar-sized 92-RON cargo for loading from July 28 to Aug. 1 to Vitol Group at $101.10 a barrel, the survey showed.
Shell bought 20,000 tons of 380-centistoke fuel oil from Mercuria Energy Ltd. at $4 a ton over benchmark quotes, according to the Bloomberg survey. The cargo is for July 17 to July 21 loading.
Fuel oil’s discount to Dubai crude widened for the third time in four days to $1.19 a barrel at 5:25 p.m. Singapore time, PVM data showed. That’s the largest discount since June 7, indicating widening losses for refiners turning crude into residual products.
The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged after climbing to $10.50 a ton, PVM said. This signals bunker, or marine fuel, moved in tandem with supplies used in power stations.
Privately held refineries in China’s Shandong province, also known as teapot plants, cut processing to 25.7 percent of their designed capacity in the week ended June 28, according to Oilchem.net. That’s the lowest rate since April 2010.
Hindustan Petroleum Corp. offered to sell as much as 30,000 tons of 1 percent sulfur gasoil for July loading from Visakhapatnam, said two traders who asked not to be identified because the information is confidential.
Bharat Petroleum Corp. sought to buy 7,000 tons of 100-RON reformate for August delivery to Haldia, said two traders who asked not to be identified because the information is confidential.
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