Asia Naphtha Crack Rises; PetroChina Sells Diesel: Oil Products

Asia’s naphtha crack spread widened, extending last week’s gain. PetroChina Co. sold ultra-low-sulfur diesel in Singapore, the region’s biggest oil-trading center.

Light Distillates

China International United Petroleum & Chemical Co., or Unipec, bought two 50,000-barrel cargoes of 92-RON gasoline, according to a Bloomberg News survey of traders who monitored transactions on the Platts window. Mercuria Energy Ltd. sold one shipment for Oct. 6 to Oct. 10 loading at $123.50 a barrel and Gunvor sold the other for Sept. 25 to Sept. 29 at $124.10.

Total SA sold a similar-sized cargo of 92-RON gasoline loading Sept. 25 to Sept. 29 to PetroChina at $124.60 a barrel, the survey showed. Royal Dutch Shell Plc bought the same quantity of 95-RON grade for Oct. 2 to Oct. 6 from Trafigura Beheer BV at $127.60.

The premium of Japan naphtha to London-traded Brent crude futures rose $1.70, or 1.5 percent, to $115.19 a metric ton at 5:10 p.m. Singapore time, according to data compiled by Bloomberg. This crack spread, a measure of the profit from making the gasoline and petrochemical feedstock, widened 4.8 percent last week.

Middle Distillates

PetroChina sold 150,000 barrels of gasoil, or diesel, with 10 parts-per-million of sulfur to BP Plc for Sept. 25 to Sept. 29, the earliest loading period, according to the Bloomberg survey. The cargo of ultra-low-sulfur diesel changed hands at $4 a barrel over prices for Sept. 25 to Oct. 1.

Gasoil’s premium to Asian marker Dubai crude dropped 24 cents to $18.67 a barrel at 1:53 p.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a gauge of processing profit, narrowed for the sixth time in seven days.

Jet fuel’s premium to gasoil climbed 5 cents to $1.80 a barrel, PVM said. That’s the highest regrade since Nov. 10, indicating it’s more profitable to make aviation fuel over diesel.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 10 cents to $3.29 a barrel at 1:53 p.m. Singapore time, according to PVM. The gap widened for a second day, signaling increased losses for refiners turning crude into residual fuels.

The premium of 180-centistoke fuel oil to 380-centistoke grade, or the viscosity spread, was unchanged for a second day at $13.75 a ton, PVM data showed. This means bunker, or marine fuel, moved in tandem with supplies used in power stations.

Refinery News

Idemitsu Kosan Co. shut the 623,000 ton-a-year ethylene plant at its Tokuyama refinery for maintenance on Sept. 4, said a company official who asked not to be identified because of internal policy.


Cargill Inc., Marubeni Corp. and Unipec bought a total of 145,000 tons of naphtha from three Indian refiners for loading in September and October, according to traders who asked not to be named because the information is confidential.

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