Asia Gasoil, Fuel Oil Cracks Weaken for Third Day: Oil Products

Asia’s gasoil and fuel oil crack spreads weakened for a third day. Naphtha refining margins rose.

Middle Distillates

Gasoil’s premium to Dubai crude fell 17 cents, or 0.9 percent, to $19.16 a barrel at 11:40 a.m. Singapore time, according to data from PVM Oil Associates Ltd., a broker.

Gasoil swaps for October rose 16 cents, or 0.1 percent, to $126.35 a barrel, PVM data showed. Jet fuel’s premium to gasoil widened 5 cents to $1.45 a barrel. This spread, or the regrade, has increased 61 percent from a week earlier, signaling it’s more profitable to make aviation fuel over diesel.

Fuel Oil

High-sulfur fuel oil’s discount to Dubai crude widened 33 cents to $3.57 a barrel, PVM data showed. A bigger discount indicates wider refining losses from making the fuel.

Fuel oil swaps for October were unchanged at $658 a ton, PVM said. The premium of 180-centistoke fuel oil to 380-centistoke grade was unchanged at $12.25 a ton.

Light Distillates

Japan naphtha’s premium to London-traded Brent crude futures gained $6.13, or 5.9 percent, to $109.59 a ton, according to data compiled by Bloomberg. This spread increased for a fifth day.

Naphtha swaps for October increased $5.75, or 0.6 percent, to $938.25 a ton, PVM data showed.

In Singapore, gasoline’s premium to naphtha fell 62 cents to $17.88 a barrel yesterday. This reforming margin has increased about 40 percent so far this month, signaling it’s more profitable for refiners to make car fuel over petrochemical feedstock.

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