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Asia Gasoil Profit Gains; Glencore Sells Naphtha: Oil Products

Aug. 17 (Bloomberg) -- Asia’s gasoil crack spread climbed to the widest in nine months, signaling increased profit for refiners. Glencore International Plc sold naphtha and gasoline cargoes in Singapore, the region’s largest oil-trading center.

Middle Distillates

The premium of gasoil, or diesel, to Asian marker Dubai crude rose 20 cents to $19.85 a barrel at 1:55 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of refining profit, was the widest since Nov. 21. It’s poised for a third weekly advance.

Jet fuel’s premium to gasoil fell 5 cents to 65 cents a barrel, PVM data showed. This regrade is set to drop for a second week, indicating it’s less profitable to make aviation fuel over diesel.

Light Distillates

The premium of Japan naphtha to London-traded Brent crude futures climbed $25.40, or 34 percent, to $99.68 a metric ton at 4:52 p.m. Singapore time, according to data compiled by Bloomberg. The difference, also known as the crack spread, was the widest since April. It’s also set to gain for a third week.

Glencore sold two 25,000-ton cargoes of open-specification naphtha at $953 a ton to Vitol Group, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. The shipments are for first-half November delivery.

Glencore, the world’s biggest commodities trader, also sold 50,000 barrels of 97-RON gasoline for Sept. 9 to Sept. 13 loading to Royal Dutch Shell Plc at $135.90 a barrel, the survey showed.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude narrowed 15 cents to $3.17 a barrel at 1:55 p.m. Singapore time, according to PVM. The gap is set to narrow for the first time in three weeks, signaling reduced losses for refiners turning crude into residual fuels.

The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged for a second day at $13 a ton, PVM data showed. This viscosity spread is to widen for a second week, meaning bunker, or marine fuel, rose less than supplies used in power stations.

Refinery News

Utilization at China’s biggest refineries fell 3 percentage points from two weeks ago to an average 80.4 percent of capacity as of yesterday, according to Oilchem.net. That’s the second-lowest rate this year. Privately owned facilities in Shandong province, known as teapot plants, increased operating rates to an average of 36.3 percent in the week ended Aug. 16, Oilchem.net said, citing a survey.

Tenders

Formosa Petrochemical Corp. offered to sell 45,000 tons of high-sulfur fuel oil for September loading from Mailiao, according to an e-mail sent to prospective buyers.

Honam Petrochemical Corp. bought 25,000 tons of naphtha for September delivery to Yeosu at a discount of 50 cents a ton to Japan prices, said two traders with knowledge of the purchase who asked not to be identified as the information is confidential.

To contact the reporters on this story: Yee Kai Pin in Singapore at kyee13@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net; Winnie Zhu in Singapore at wzhu4@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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