Refiners’ profits from gasoil fell, paring the second weekly increase in margins. Losses from making fuel oil were at the widest in five weeks.
The premium of gasoil to Dubai crude fell 5 cents, or 0.3 percent, to $17.50 a barrel at 10:15 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. The spread has widened 1.2 percent so far this week, the second weekly increase.
Singapore gasoil swaps for August rose $1.65, or 1.5 percent, to $115.35 a barrel. Prices gained 1 percent this week, the least since the five days to June 22, when they dropped 5 percent.
Jet fuel traded at a premium of 75 cents a barrel to gasoil, unchanged from yesterday. This spread, also known as the regrade, has decreased 25 percent from a week earlier, signaling it is less profitable to make aviation fuel.
Singapore fuel oil’s discount to Dubai crude widened by 40 cents, or 24 percent, to $2.10 a barrel, PVM data showed. The discount is the biggest since June 5, signaling growing losses from making the fuel.
High-sulfur fuel-oil swaps for August jumped $8.25, or 1.4 percent, to $608 a metric ton. Prices have increased 0.5 percent this week.
The premium of 180-centistoke fuel oil to the 380-centistoke grade was at $11.75 a ton. The premium has dropped $1 from a week earlier, signaling that prices of bunker fuel for ships rose faster than power-station fuel oil.
Japan naphtha’s premium to London-traded Brent crude futures rose to $51.62 a ton from $49.29 yesterday, according to Bloomberg calculations based on PVM data. The spread has narrowed 34 percent so far this week, the most since June 8.
Naphtha swaps for August were at $810.75 a ton and have declined 0.8 percent this week.