Sept. 14 (Bloomberg) -- Asia refining profits from gasoil fell from the highest level in a week. The fuel-oil crack widened for a second week, signaling bigger losses for refiners making the residue.
Gasoil’s premium to Dubai crude fell 65 cents to $18.40 a barrel at 10:12 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker. This crack spread, a measure of the profit from making the fuel, was at $19.05 yesterday, the widest since Sept. 4.
Gasoil swaps for October rose 5 cents to $132 a barrel, PVM data showed. Prices have gained 1.7 percent so far this week.
Jet fuel’s premium to gasoil fell 5 cents to $1.25, PVM data showed. This spread, or the regrade, has decreased 29 percent from a week earlier, signaling it is less profitable to make aviation fuel.
High-sulfur fuel oil’s discount to Dubai crude widened 15 cents to $3.40 a barrel, PVM data showed. The crack spread is set to worsen for the second week.
Fuel-oil swaps for October jumped $3.50, or 0.5 percent, to $699.75 a metric ton, according to PVM data. The premium of 180-centistoke fuel oil to 380-centistoke grade, was at $14.50 a ton today. This viscosity spread has increased in five of the past six weeks, signaling that prices of the less-viscous grade used in power stations have risen faster than bunker fuel.
Japan naphtha’s premium to London-traded Brent crude futures increased $5.73, or 6 percent, to $101 a ton, according to data compiled by Bloomberg. The spread has declined 11 percent this week.
Naphtha swaps for October rose $4, or 0.4 percent, to $980 a ton, PVM data showed.
In Singapore, gasoline’s premium to naphtha gained 11 percent to $17.34 a barrel yesterday, the biggest increase since Sept. 7, Bloomberg data showed. A wider reforming margin means it is more profitable to make motor fuel instead of naphtha.
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